Common use of Bonus and rights fractions Clause in Contracts

Bonus and rights fractions. Periodically a company may issue additional shares or cash in the form of a rights issue, bonus issue or similar. On occasion the terms of the issue may mean that our nominee receives shares and/or cash in addition to those attributable to your own and other individual client portfolios due to the bulking effect of holding all stock in a single nominee name. In such instances, FIM reserves the right to credit such part shares into a Rights Clearing Account, which will be held for its own benefit.