There are three types:
Mandatory - Happens automatically.
Mandatory with options - Happens, but you get a choice.
Voluntary - Only happens if you opt in.
Does Freetrade support all corporate actions?
No. Freetrade supports some corporate actions when feasible, but not all. If an action is supported:
We’ll notify you with the details and any required steps.
If you don’t respond in time, you may miss out on benefits (e.g. shares, cash, offers).
In some cases, we may act on your behalf in your best interest.
Examples of corporate actions
Type | Action | Effect |
Mandatory | Stock Split | More shares at lower price – value unchanged. |
| Consolidation (Reverse Split) | Fewer shares at higher price – value unchanged. |
| Dividend | Cash payment per share. Paid in GBP. Fractional shares get rounded dividends. |
| Bonus Issue | Free extra shares. |
| Merger / Demerger / Spin-off | Shares replaced or split. You may receive cash if new shares aren’t supported. |
| Mandatory Takeover | Shares may be bought out – you may receive new shares or cash. |
Mandatory with options | Scrip Dividend | Choose between cash or more shares. |
| Rights Issue | Buy extra shares at a discount. May not always be supported. |
Voluntary | Tender Offer | Company offers to buy your shares. You choose whether to sell. |
| Buyback Offer | Company offers to repurchase shares, possibly at a premium. |
| Exchange Offer | Option to swap your shares for others (or bonds). |
How does proxy voting work?
If you hold UK or US-listed stocks, you may be invited to vote on company matters (e.g. mergers, director elections).
You’ll get an email with a ballot.
You can vote or ignore it.
Fractional shares count proportionally.
You may be able to attend meetings (details will be in the ballot).
To enable proxy voting:
App → Portfolio → Profile → Contact Us → My investments → Dividends and corporate actions → Proxy voting
You can’t use proxy voting to participate in voluntary corporate actions directly.
What happens if I do nothing?
If Freetrade supports the action but you don’t respond, or if we don’t support the action, you may miss out on entitlements like:
Extra shares
Discounted offers
Cash payments
Always check messages from Freetrade for action deadlines.