If a Return of Capital has been given to a share holder due to a company liquidation, can that return be taken back again after delisting? Even if said return as dividend has been reinvested into another company?
That’s what has happened to me after a company got delisted.
Hey, @Franky1 - the return of capital paid as a result of EPIC’s delisting has not been reclaimed from the account of any shareholder. Generally, we don’t make any reclaims once a corporate event is executed per its official terms.
If you believe there is something wrong with the numbers on your account, please provide me with some additional details via DM. I’ll gladly check this in detail for you.
it’s fine…I don’t think it’s right and it doesn’t make complete sense what i was told by staff but bottom line is, I was given dividends by the delisted company as Return of Capital corporate event; in the amount that my shares were worth but then said shares were retracted after the delisting was completed.
I don’t think that’s right to do that to customers but that’s obviously how things must work.
What bothers me is that said share amount was REINVESTED into my other holding but that share amount was still retracted out of that holding somehow.
I don’t see how any dividend can retroactively be revoked like that…I’ve never heard of it before…I also have screenshot evidence which proves that is what happened…It just bugs me and makes me uneasy to invest any further with larger sums.
I’m sorry to hear that the situation makes you feel uneasy.
After double-checking the event and your communication with our team, I can only confirm that everything was correctly reflected and nothing was reclaimed back. Here’s a summary of everything that took place:
Ediston Property Investment Co PLC announced the disposal of their property portfolio and the voluntary liquidation of the company on September 8, 2023. This proposal was then approved by shareholders on September 26, 2023.
On January 19, 2024, we reflected the first part of this corporate event as per the official terms - a liquidation dividend of 69 GBX per share was paid to all shareholders.
On February 5, 2024, the second part of the corporate event was executed - all EPIC positions were closed at 0 GBX per share, again as per the official terms of the event.
The liquidation dividend paid in January covers the difference that comes from closing the position at 0 GBX per share. All terms of the corporate event, and in general, the terms of execution of corporate events, are beyond our control. They always depend on the company itself, as well as any other parties that may be involved. As soon as the official terms of an event are confirmed, we reflect that right away on our end and notify all shareholders. Still, if anything else remains unclear, please let me know, and I’ll gladly assist
I appreciate the assistance…I’m not sure it makes me feel any easier though but thank you.
Hi. I have followed this thread out of interest what the answer is. Obviously in some ways it’s nothing to do with me but you have posted on a public forum. I like to understand all issues regarding shares to have as full an understanding and knowledge as possible. I am therefore interested in this to understand it.
From the answer from T212 it seems like the company decided basically sell up and liquidate itself returning the value within the business to the shareholders. That seems perfectly reasonable. So they essentially had to find a way to close the company down and pay out the value to the shareholders. Paying a single final dividend is the simplest way because the shares then just get extinguished at zero. The alternative would be for the company to cancel the shares - ie a buyback but essentially for the all of the issued shares. The way they did it was the company’s decision and nothing to do with T212 and there was shareholder approval for the scheme (in Sept 2023).
The answer from T212 says that you were paid the dividend but you seem to suggest that you received it and it was then taken back which I can’t understand. Assuming you have received the dividend then I am not sure what more you think should have happened. Once the company paid this final dividend it was essentially just an empty shell and shareholders had given approval for all of this to happen. Thus in Sept 2023 shareholders agree that all of the outstanding shares would be cancelled. I would therefore be interested to know what more you expected or what you think was wrong. [edit: after the final dividend was paid there was no value in the company and the shares were worthless and cancelled by the company at zero as agreed with shareholders in Sept]
T212 have to be completely meticulous in the administration of corporate actions so they can only do what the company instructs
What I expected I have expressed in private to T212 staff.
I was just trying to understand and learn because you said that the dividend that had been paid was taken back after it was paid and was retrospectively revoked