Lapses
Right Lapses Window Options
In the great majority of cases Rights Issues are assumed to have been taken up by the system so action is normally only required where the Nil Paid shares have been allowed to lapse or were sold through the market.
If the Nil Paid Rights were sold through the market, rather than allowed to Lapse, then the Sales screen should be used.
Any calls due on the new shares will automatically be generated by the system.
The window contains the following fields:
| Field | Description |
| Security Code | Enter the Nil-paid Code of the Security in question taking care not to enter the Code of the parent shares. In the great majority of cases a new Code is allocated for Nil-paid holdings and can be found on the Schedule or within the Security Code Lookup Facility. To use the Lookup position your cursor within the Security Code field and then either double click your mouse or alternatively press the F5 key on your keyboard. The term "Nil-paid" will normally be readily identifiable within the Security description. |
| Date of Lapse | Enter a date that is prior to the due date of the call - by convention a Lapse is normally deemed to take place the day before the Call is due. Do not use a date that is later than, or the same as, the date that the system transfers the shares to the fully paid code. |
| Shares Sold | Enter the total number of Nil-paid Allotment Letters that have been lapsed. |
| Proceeds | Enter the total cash entitlement due. |
| Small Disposal Indicator | Select the check box you require the disposal to be treated under the 5% Rule, i.e. the proceeds will be used to reduce the base cost of the asset. |