Hail, Hail and welcome to our second article on how to buy shares in Celtic. In this article we explain the different types of shares you can purchase in Celtic PLC.
We will also look at the difference between holding shares in a nominee account and a certificated account.
Three types of shares available from Celtic PLC
There are three tradeable classes of shares on the Celtic plc register listed on the AIM Market of the London Stock Exchange, each of which holds different rights:
Ordinary Shares of 1p each: Ordinary Shares hold voting rights and participate in ordinary dividends, if declared. Holders of Ordinary Shares may attend, speak and vote at the Annual General Meeting.
Convertible Cumulative Preference (“CCP”) Shares of 60p each: CCP Shares do not hold voting rights but pay an annual fixed dividend of 3.6 pence per share (6% of the nominal value). CCP Shares can be converted into Ordinary Shares on a one for one basis. Holders of CCP Shares alone cannot attend, speak or vote at the Annual General Meeting.
Convertible Preferred Ordinary (“CPO”) Shares of 100p each (CPO): CPO Shares hold voting rights and participate in ordinary dividends, if declared. CPO Shares can be converted into Ordinary Shares on a 2.08 for one basis. Holders of CPO Shares may attend, speak and vote at the Annual General Meeting
Celtic plc also has in issue, Deferred Shares of 1p each which hold no voting or dividend rights and are issued for nominal value balancing purposes only following the conversion of CCP or CPO Shares.
Types of shareholding accounts
There are 2 different ways to hold your shares. Nominee and Certificated. Below we explain these.
A nominee is an individual or business chosen to manage assets or undertake transactions in, say, securities or other assets on behalf of another individual or business, which retain ownership of the asset in question.
For example, a nominee account is often used by a stockbroker to hold shares that belong to its clients, allowing the stockbroker to buy or sell shares on the client’s behalf.
This gives the stockbroker the necessary control to conduct transactions, while ensuring the client retains all rights over the securities, such as voting rights and dividend entitlements.
Shareholders receive the formal certificate of ownership through the post, confirming how many shares they own.
After that, all communication from the company will come via the company registrars – be it receiving dividends, company reports, or invitations to vote for directors and attend Annual General Meetings (AGMs).
We hope this info blog gives you a better understanding of shares available and types of share holding accounts.
Download our pdf document.
Hail, Hail. Wullie.