The Ins and Outs of Depositary Agreement with Computershare
As legal and financial professionals, we are always on the lookout for the most effective and reliable ways to handle important agreements, such as the depositary agreement with Computershare. This agreement is a crucial aspect of many financial transactions and plays a pivotal role in ensuring the smooth and secure transfer of assets. Let`s delve into the details of this agreement and understand its significance.
Understanding the Depositary Agreement
The depositary agreement with Computershare is a legally binding contract that outlines the terms and conditions for the safekeeping and transfer of securities. Computershare, a global leader in financial services, acts as the depositary and plays a key role in facilitating the issuance, transfer, and redemption of securities. This agreement essential companies looking raise capital issuance securities investors wish trade securities.
The Importance of Computershare in Depositary Agreements
Computershare`s expertise and robust infrastructure make it an ideal partner for depositary services. With a global network and cutting-edge technology, Computershare ensures the efficient and secure management of securities, providing peace of mind to both issuers and investors. Let`s take a look at some key statistics to highlight Computershare`s significance in the depositary space:
| Global Reach | Technology Infrastructure | Market Share |
|---|---|---|
| Operates in over 20 countries | State-of-the-art systems for secure asset management | Holds a significant portion of the global depositary market |
Case Study: Successful Implementation of Depositary Agreement
Let`s consider a real-world example of how the depositary agreement with Computershare has led to a seamless and efficient transfer of securities. Company XYZ, a leading tech firm, recently issued new shares to raise capital for expansion. By partnering with Computershare for depositary services, Company XYZ was able to ensure prompt and accurate processing of share transfers, leading to a successful fundraising exercise.
The depositary agreement with Computershare is a vital component of many financial transactions, providing a secure framework for the issuance, transfer, and redemption of securities. With Computershare`s global reach and advanced technology, this agreement offers peace of mind to issuers and investors alike. Understanding the intricacies of this agreement is crucial for legal and financial professionals, and we hope this article has shed light on its significance.
Top 10 Legal Questions about Depositary Agreement with Computershare
| Legal Question | Answer |
|---|---|
| 1. What is a depositary agreement with Computershare? | A depositary agreement with Computershare is a legally binding contract between a company and Computershare, appointing Computershare as the depositary for the company`s securities. This agreement outlines the rights and responsibilities of both parties regarding the custody and administration of the securities. |
| 2. What are the key provisions of a depositary agreement with Computershare? | The key provisions of a depositary agreement with Computershare typically include the appointment of Computershare as the depositary, the custody and safekeeping of securities, the distribution of dividends and other income, the exercise of rights attached to the securities, and the provision of reporting and recordkeeping services. |
| 3. How does Computershare safeguard the securities under the depositary agreement? | Computershare safeguards the securities under the depositary agreement by maintaining secure custody facilities, implementing strict internal controls, and adhering to industry best practices for the protection of securities. Additionally, Computershare may obtain insurance coverage to further safeguard the securities. |
| 4. What are the benefits of entering into a depositary agreement with Computershare? | Entering into a depositary agreement with Computershare can provide companies with efficient and reliable custody services, access to Computershare`s global network and expertise, enhanced investor confidence, and compliance with regulatory requirements. Moreover, Computershare`s technology and reporting capabilities can streamline the administration of securities. |
| 5. How can a company terminate a depositary agreement with Computershare? | A company can typically terminate a depositary agreement with Computershare by following the termination provisions outlined in the agreement. This may involve providing advance notice to Computershare, complying with any termination fees or penalties, and transferring the custody of securities to another depositary or custodian. |
| 6. What are the legal implications of a breach of the depositary agreement by Computershare? | If Computershare breaches the terms of the depositary agreement, the company may have legal recourse to seek damages, specific performance, or other remedies through litigation or alternative dispute resolution methods. It is important for companies to carefully review the breach provisions and dispute resolution mechanisms in the agreement. |
| 7. Can Computershare be held liable for any loss or damage to the securities under the depositary agreement? | Computershare`s liability for any loss or damage to the securities is typically governed by the provisions of the depositary agreement, as well as applicable laws and regulations. Companies should review the limitation of liability and indemnification clauses in the agreement to understand the extent of Computershare`s liability. |
| 8. Are there any regulatory requirements or disclosures associated with a depositary agreement with Computershare? | Companies entering into a depositary agreement with Computershare must ensure compliance with relevant regulatory requirements, such as securities laws, disclosure obligations, and regulatory filings. Additionally, companies may need to disclose the terms of the depositary agreement in their public filings and communications with investors. |
| 9. Can a depositary agreement with Computershare be amended or modified? | Subject to the provisions of the agreement and the consent of both parties, a depositary agreement with Computershare can typically be amended or modified through a written agreement. Companies should carefully consider the implications of any proposed amendments and seek legal advice if necessary. |
| 10. What are the best practices for negotiating a depositary agreement with Computershare? | When negotiating a depositary agreement with Computershare, companies should conduct thorough due diligence on Computershare`s services and reputation, clearly define their expectations and requirements in the agreement, seek legal and financial advice, and consider the long-term implications of the agreement on their business and stakeholders. |
Depositary Agreement – Computershare
This Depositary Agreement (the “Agreement”) is entered into as of [Date], by and between [Party A] and [Party B].
| 1. Definitions |
|---|
| 1.1 “Depositary” means Computershare, a global leader in financial and governance services. |
| 2. Appointment Depositary |
|---|
| 2.1 Party A hereby appoints Depositary to act as the depositary for the issuance, transfer, and registration of Party A`s securities. |
| 3. Duties Depositary |
|---|
| 3.1 Depositary shall perform all duties in accordance with the terms of this Agreement and applicable laws and regulations. |
| 4. Compensation |
|---|
| 4.1 Party A shall pay Depositary the agreed upon fee for its services as set forth in a separate fee schedule. |
| 5. Duration Termination |
|---|
| 5.1 This Agreement shall commence on the effective date and shall continue until terminated by either Party in accordance with the terms herein. |
IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the date first written above.