Germany: Record date for dividend payments – Introduction postponed

According to the proposal for decision and report of the committee for law and consumer protection about the draft law of the German government – printed matter 18/4349 draft law for changing the Stock Corporation Act (“Aktienrechtsnovelle 2016”) - the entry into force of the new regulation on dividend payment date (record date for dividend payments) in article 1 number 5 AktG-E has been changed to

1 January 2017.

By changing the entry into force date of the new regulation on dividend payment date to1 January 2017, the Ministry of Justice wants to prevent any inconsistent treatment of dividends in 2016. The decision to postpone the introduction of the record date is in the event the law is not published in the Federal Law Gazette in 2015 and then the law would not come into force in time.

In order to further ensure a consistent execution of Corporate Actions in the German Market, the German Market Practice Committee decided to introduce the record date for non-income events only on 1 January 2017.

As a result, Clearstream Banking¹ will execute all Corporate Actions in German instruments with the current timeline general meeting date (entitlement date), ex-date/payment date.

Further information

For further information, customers may contact Clearstream Banking Client Services or their Relationship Officer.

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1. Clearstream Banking refers to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248.