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Corporate actions explained

A corporate action is an event carried out by a listed company that can impact its structure or investment value, therefore being relevant to its shareholders.

Corporate actions are typically approved by the company's board of directors, but some may require the response of shareholders, where they may be permitted to vote.

The most common type of corporate action events with trading are: 

  • Dividend/distribution payments 
  • Dividend Reinvestment Plans (DRPs)
  • Stock splits
  • Stock consolidations/Reverse stock splits
  • Unmarketable parcel share sale facility
  • Mergers and acquisitions
  • Buy-backs
  • Rights issues 

Stake will handle certain corporate actions on your behalf, such as dividends and stock splits. However, when you are required to do something or take an action in respect of a corporate action, you will need to liaise directly with the applicable share registry, proxy partner, or contact the Issuer directly. 

It is recommended that investors approach such opportunities with caution and perform their due diligence before making an investment decision. Investors should also seek independent financial, legal and tax advice before proceeding.

Stake may use reasonable endeavours to assist you, however we do not guarantee that this will be possible in all instances. If you have any questions feel free to reach out to the customer support team here

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Stakeshop Pty Ltd, trading as Stake, ACN 610105505, is an authorised representative (Authorised Representative No. 1241398) of Sanlam Private Wealth Pty Ltd (Australian Financial Services Licence No. 337927) ('Sanlam') and an authorised representative (Authorised Representative No. 1241398) of Airwallex Pty Ltd (Australian Financial Services Licence No. 487221) ('Airwallex'). Stake is not authorised by Airwallex under Airwallex’s AFSL to arrange for clients to be issued with securities as Airwallex is not authorised under its AFSL for this purpose. Stake is not authorised by Sanlam under Sanlam’s AFSL to arrange for clients to be issued with a non-cash payment facility as Sanlam is not authorised under its AFSL for this purpose. Stake SMSF Pty Ltd (‘Stake Super’) is not licensed to provide financial product advice under the Corporations Act. This specifically applies to any financial products which are established if you instruct Stake Super to set up a self managed super fund (‘SMSF’). When you sign up to Stake Super, you are contracting with Stake SMSF Pty Ltd who will assist in the establishment of a SMSF under a ‘no advice model’. You will also be referred to Stakeshop Pty Ltd to enable your trading account and bank account to be set up in order to use the Stake Website and/or App. Stakeshop Pty Ltd will also run marketing and promotions to you under. For more information about SMSFs, see our SMSF Risks page.The information on our website or our mobile application is not intended to be an inducement, offer or solicitation to anyone in any jurisdiction in which Stake is not regulated or able to market its services. At Stake and Stake Super, we’re focused on giving you a better investing experience but we don’t take into account your personal objectives, circumstances or financial needs. Any advice given by Stake is of a general nature only. As investments carry risk, before making any investment decision, please consider if it’s right for you and seek appropriate taxation and legal advice. Please view our Financial Services GuideTerms & ConditionsPrivacy Policy and Disclaimers  before deciding to invest on or use Stake or Stake Super. By using our website or service in any way, you agree to our Privacy Policy and Terms & Conditions. All financial products involve risk and you should ensure you understand the risks involved as certain financial products may not be suitable to everyone. Past performance of any product described on this website is not a reliable indication of future performance. Stake and Stake Super are registered trademarks in Australia.

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