Frequently asked questions
In this section, we provide answers to the questions most commonly asked by our shareholders, which have been divided into these five categories.
To assist you in finding the information you require, simply click on one of the categories below and you will be taken to a number of questions and answers:
Ordinary Shareholders
What is an ordinary share?
Companies are incorporated with an authorised share capital - for instance 1,000 ordinary £1 shares. They do not have to issue all the authorised shares, but can issue as many as they like up to the authorised number.
Once issued the shares can be traded either privately or on an exchange if the company has listed them. The price at which they trade will have nothing to do with the par value, but will be determined by market forces. Broadly speaking, if there are more willing buyers than sellers, the price will rise; if there are more sellers than buyers, it will fall.
What is a shareholder?
A shareholder is an individual [or a company] who holds shares in a company. Because of this holding they are entitled to a share in any dividends paid by the company; a share in the value of the company as measured by its share price; a share in the eventual value of the business if it is sold; and some influence over those managing the business and a say in its aims and structure.
What right does a shareholder have/What are the benefits of investing in shares?
Holding shares in a company generally entitles the shareholder to vote at general meetings of the company - one vote for every share is the most common system. Shareholders will normally also receive a copy of a summary of the company's annual report and accounts and receive dividend payments.
Did I qualify for shares as an investing member?
You may have been entitled to receive an allocation of free shares as an investing member if you held at least £100 in share accounts and/or PIBS of Halifax Building Society and/or the Leeds Permanent Building Society as at midnight on 25th November 1994 and 31st December 1996.
In addition, you must have remained an investing member continuously until conversion and have been eligible to vote on the investing members’ conversion resolution and had a registered address in a permitted territory.
If you met all the above conditions, but did not receive an allocation of shares following our conversion in June 1997, please email sscorrespondence@hbosplc.com and we will investigate your qualification.
Did I qualify for shares as a borrowing member?
You may have qualified for the basic distribution of free shares as a borrowing member of the former Halifax Building Society if you:
- were either a sole or first-named joint holder of a mortgage account or secured personal loan with an outstanding balance of at least £100 at midnight on 25th November 1994, and
- remained either a sole or first-named joint holder of a mortgage and/or secured personal loan continuously through to conversion, and
- had also been eligible to vote on the borrowing members' resolution on conversion at the Special General Meeting, and
- had a registered address in the UK or a permitted territory as at midnight on the day before vesting day.
If you met all the above conditions, but did not receive an allocation of shares following our conversion in June 1997, please email sscorrespondence@hbosplc.com and we will investigate your qualification.
I am the personal representative of a deceased shareholder. What do I need to do next?
If you manage the estate of a recently deceased shareholder you may contact our registrars, Computershare Investor Services PLC on 0870 702 0102 and provide details of the late shareholder. These should include the full name, the registered address and the folio numberif you have that information. Computershare will then communicate the full legal requirements for the registration of the death.
Preference Shareholders
What is a preference share?
Shares in a company which give their holders an entitlement to a fixed dividend but which do not usually carry voting rights.
How is the dividend rate for preference shares fixed? Is it fixed at a set rate forever?
The rate of the coupon for a particular series of preference shares is fixed and will not change. The amount of the dividend paid may, however, change if there are, at any given time, insufficient distributable reserves to pay a dividend in full, or if the full payment might breach the company’s capital adequacy requirements.
Can I vote at the HBOS AGM if I hold preference shares?
Preference shares carry limited voting rights and will not normally have voting rights at Annual General Meeting's. Preference shareholders will only be able to vote on certain issues which directly affect them, such as if a resolution is to be proposed at an AGM which would vary the rights attaching to that series of preference shares, or a resolution is proposed to wind up the company. Preference shareholders would also be entitled to vote at a general meeting if their dividends had not been paid in full by that time.
I am the personal representative of a deceased shareholder. What do I need to do next?
If you manage the estate of a recently deceased shareholder you may contact our registrars, Computershare Investor Services PLC on 0870 702 0102 and provide details of the late shareholder. These should include the full name, the registered address and the folio number if you have that information. Computershare will then communicate the full legal requirements for the registration of the death.
Dividends
What is a dividend?
Each year the directors have to decide how much to recommend, if any, of its profits to be reinvested in HBOS plc and how much, if any, will be paid out to its shareholders.
Once they have decided to recommend what proportion, if any, of the profits will go to shareholders, the amount is divided equally by the number of company shares in issue, to give a dividend per share figure. For example, if the directors of a company decide to recommend a distribution of £100 to its shareholders and it has issued 1,000 shares, each share will receive a dividend of 10p.
When will the dividends be paid?
Like most companies, HBOS plc will normally pay its annual dividend in two instalments. These are known as the interim and the final dividend. The interim dividend, as its name suggests, is paid part way through the company's financial year, and is usually a smaller amount than the final dividend.
Each year, HBOS plc will normally pay its interim dividend in October and its final dividend in May. The figure recommended by the directors of a company for the final dividend then has to be agreed by the company's shareholders at the Annual General Meeting before it can be paid.
When will the dividend payments be announced?
The proposed dividend amount for HBOS plc ordinary shares will be announced as part of the Interim Results and Annual Results communicated in July and February respectively.
In addition, there is the mandatory requirement for HBOS plc to notify the Stock Exchange of its results and this is carried out in the form of a document known as the Regulatory News Service. Customers can request a copy of this document by telephoning the Registrars on 0870 702 0102
Who is eligible to receive a dividend?
A dividend is paid to all shareholders with a registered share balance named on the register on a specific date known as the record date. The record date is normally about one month before the next dividend payment is due and will therefore be communicated as part of the Interim Results and Annual Results, announced in July and March respectively.
Shortly before the record date is the ex-dividend date. If shares are sold on or after this date, the person selling the shares will retain the right to receive the dividend payment. Alternatively, if a person purchases shares on or after this date, they will not be entitled to receive the dividend payment.
How will my dividend be paid?
The dividend will be paid to shareholders in one of four ways:
Credit to a Halifax/Bank of Scotland account.
Credit to another Bank/Building Society account.
Payment by cheque.
Re-invested in further shares.
How do I change my dividend payment instructions?
You can change the way you currently have your dividend paid by completing a Dividend Mandate Form. You can obtain a copy of the form by visiting a branch office, by contacting our Registrars on 0870 702 0102 or by downloading a copy after accessing our 'Downloadable Forms' page.
AGM
What is an AGM?
An annual meeting, called by the directors of a company, which shareholders are invited to attend. Subjects normally discussed include audited accounts, election or re-election of directors and dividend payments to shareholders.
The AGM is the main opportunity for shareholders to put questions direct to the directors of the company. They can also put forward their own motions, though some companies have criteria for motions which may restrict this - e.g. they may require that only shareholders with a certain number of shares can put forward motions.
Where was the 2008 AGM held?
The 2008 HBOS plc AGM was held at the SECC in Glasgow on Tuesday 29 April. Taking into account the size of HBOS plc, and the nationwide location of our shareholders, we feel that it is now appropriate to stage the AGM in different locations around the UK. If you were unable to attend the AGM you can still view the webcast.
Can non-shareholders attend the AGM?
Only shareholders, proxies appointed by shareholders and certain participants (i.e.HBOS Shareholder Account holders or HBOS Share PEP investors or shareholders who hold their shares with HSDL or Preference Shareholders) are entitled to attend the meeting.
Non-shareholders who are accompanying shareholders or participants will be admitted at the discretion of the Company.
When should I have received my Annual General Meeting mailing?
The mailing was distributed to our shareholders throughout March 2008.
What should I expect to find in my mailing?
There are a number of different elements involved in the mailing, however, the main inclusions are the Notice of Meeting and a Summary Financial Statement. You may also receive an Attendance Card, a Voting Form and a Consolidated Tax Voucher depending on how you hold your shares and how your dividends are paid. More specific information will be included in the AGM section nearer the time of the meeting.
Should I receive more than one mailing?
If you receive more than one pack you may be able to consolidate your holdings by contacting our registrars, Computershare Investor Services PLC. You will need to quote your folio number(s) (also known as SRN or Share Registration Number) either when calling or in correspondence. Your folio number can be found on either your share certificate or your latest shareholder account statement.
What is a proxy?
A proxy is a person, or representative of an organisation who attends the AGM on behalf of a shareholder and either casts their votes according to the shareholders instruction, or is given an authority by the shareholder to cast their votes as they decide.
