Securities administration - Slovenia
Income collection
Equities
Dividend distributions are announced at the annual general meeting (AGM) of the issuer and are normally paid annually.
Payment of income is usually provided by KDD, as the market follows CASG/CAJWG standards of CTM tree model processing of corporate actions. With Slovenia's entry to the T2S, KDD has become the major payment agent for the issuers. Issuer members of KDD have to execute dividend payment through KDD, by paying the total amount to KDD's DCA account. KDD is liable for allocation of dividend payment to its members in gross amount. KDD's members further on allocate the payment to their clients and are liable for calculation, deduction and payment of withholding tax to the Slovenian tax authorities. Issuers have to announce dividend payment at least 4 business days to KDD before record date, ex-date is RD-1, and proposed standard payment date is one business days after the record date.
On record date, entitlement is determined by the settled position at the end of day. No rule exists to regulate the minimum time between the announcement of dividend payments and the payment date. The payment date is usually set on the GM as the final date for the payment, which may be executed any time till then. However, KDD encourages its members-issuers for payment to be made one business day after the record date.
Bonds
Interests on debt securities are paid according to the amortization schedule, determined at the issue, usually once a year. Quotations for bonds are without coupon so the settled position gives a buyer coupon till the trade date.
As well for the government bonds, payments are executed on a gross basis to the accounts of KDD members, which further on allocate the payment to their clients and are liable for calculation, deduction and payment of withholding tax to the Slovenian tax authorities.
For corporate bonds, the issuer should make the payment to the DCA account of KDD in gross amount. After allocation to entitled accounts of KDD members, which further on allocate the payment to their clients and are liable for calculation, deduction and payment of withholding tax to the Slovenian tax authorities.
Corporate actions
Most common corporate events
The most common corporate actions in the market are stock splits, stock dividends, takeovers, mergers and rights issues. Rights are neither tradable nor transferable; they can only be exercised or lapsed.
The primary sources of corporate action information are the information system for LJSE, SEOnet ( www.seonet.ljse.si ) the Slovenian business registry (Ajpes) and KDD for its members.
According to current regulations, public companies are required to publish announcements of events, including AGMs and EGMs, or other information that is relevant to their shareholders in newspapers, business journals and company's website as well as in a daily notification sent by the KDD and the LJSE to its members.
LJSE provides corporate action information on the same day as the announcement or on the day after.
Organisation of AGM/EGMs
In order to exercise voting rights at GMs, either the holder, a foreign custodian or a nominee must be registered. A proxy can be appointed through a power of attorney but physical presence at the meeting is required.