RE: Just wanted to..6 May 2025 20:32
Good spot.
After initial consultation with the AI oracle, and a bit of back & forth with question refining, this is what it came up with…
“Given investors issued DRs (DR Holders) are not direct shareholders in the ASX listed company, they cannot directly exercise shareholder rights except through the Overseas DR Issuer. Although each DR registered with the Overseas Exchange represents evidence of beneficial ownership of the underlying shares, such beneficial ownership will not necessarily be recognised by an Australian court.
DR Holders must look solely to the Overseas DR Issuer (which then instructs the Home Custodian) for the payment of dividends, exercise of voting rights and any other rights attaching to the underlying shares. Dividends are typically paid later than for those directly holding ASX shares. The Overseas DR Issuer will utilise reasonable endeavours to pass on benefits of non-cash distributions to DR Holders. Exercise of other shareholder rights may be limited.
To benefit from direct shareholder rights under Australian law or the company’s constitution, a shareholder must shunt the shares back to the ASX register at the cost of the requesting shareholder.
How it Works:
• Australian investors buy and sell CDIs on the ASX in Australian dollars.
• These CDIs are not legal shares — they’re receipts representing beneficial ownership of UK-registered shares.
• The actual shares remain on the UK share register, typically held in a custodian account (e.g., via Link Market Services or Computershare).
If you’re a UK shareholder:
• Your ordinary shares will stay on the UK register unless you choose to transfer them to the CDI register to trade on the ASX.
• Converting UK shares to ASX CDIs (or vice versa) is possible, but involves a “shunting” process, which can take a few days and may incur admin fees.“
Had me worried there for a moment…
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