By the term Custody one understands the Verwahrung and administration of securities. Under the comprehensive term Custody are summarized different security services, which the product offering bank can furnish:

• The completion of the purchases accomplished by security dealers and sales
• The Verwahrung of the securities with the local cent ral Securities Depository (CSD) or - with effective piece in a safe deposit
• The processing of dividend and interest payments
• Tax services like e.g. tax refunds
• Management of capital measures
• General meeting services

One differentiates between the global and the local Verwahrung and administration of securities.

Securities trading

The securities trading is the condition for the Verwahrung of securities.

Verwahrung of the securities

Effective pieces in a safe deposit

Verwahrung of securities with a central keeper

Administration of the securities

Dividend and interest payment

1. Dividends

With dividends from German shares effected regularly a deduction of tax at a value of 20% (plus 5,5% solidarity tax) of the dividend which can be paid in form that capital return-expensively (KESt) through retain from the declaration of dividend at the corporation. Over the retained KESt plus solidarity tax by the disbursing Depotbank a tax certificate is to be given to the dividend receiver.

The dividends are to be taxed with domestic persons under normal conditions both in the private possession and in the operating ability after the half income procedure as incomes.

The receiver of a dividend a domestic finance company (e.g. AG, GmbH) is so can the income depending upon the kind of the participation in the other finance company taxfree or taxable be.

2. Achievement from the fiscal deposit account in accordance with "§ 27 KStG nF

If the payment of the dividend took place as achievement from the fiscal deposit account in accordance with "§ 27 KStG nF, then the society has to mark this payment as such. This payment is considered as restitution of inserts and reduces the initial costs. It is not controllable income and is subject thereby not to the deduction of tax at a value of 20% (plus 5,5% solidarity tax).

Tax service

Completion of capital measures

General meeting service

Technical completion of general meeting services

The general order right to vote is regulated in "§ 135 law on limited companies. It is to make possible for the shareholders at the general meetings to be properly represented. In addition the shareholder of the bank gives an authority. The authority entitled the bank to exercise the right to vote in the general meetings of the society from which the depositor possesses shares. Exception of it is the right to vote with Volkswagen AG, for which only Einzelvollmachten can be used. The authority is at any time revocable. Beyond that the customer can give deviating orders to each general meeting. So it can e.g. require the exhibition of a ticket for itself or for third (, acquaintance or shareholder combinations used). Further he can give Kreditinstitut own instructions (special instructions) for the right to vote practice (if Kreditinstitut offers this service, since no legal obligation for the credit institutes gives, such customer instructions If a depositor keeps fiduziarische registered shares (on the name of the Depotbank in the share register registered shares) with the Depotbank, these shares can be represented due to a single or a permanent power of attorney - without disclosure of the name of the shareholder - by the Depotbank.

Authority the shareholder can give to its Depotbank either an authority for each individual general meeting (Einzelvollmacht), or the bank generally up to revocation authorizes (general authority/permanent power of attorney). The respective authority requires writing.

General authority/permanent power of attorney the general authority is a permanent power of attorney, which is valid by the depositor starting from the day of the entrance up to revocation. This authority is caught up i.d.R during depot opening by the respective customer responsible person. If by the customer explanations on the authority form are appropriate, which are not connected with the right to vote practice, the authority loses its validity after "§ 135 exp. 2 law on limited companies and as groundless is regarded.

Single authority single authority is caught up, if no general authority/permanent power of attorney is present, to each general meeting directly with the depositor.

Continuous authority is not possible for Kapitalanlagegesellschaften. Exception has here the legislator only certified, if the Kapitalanlagegesellschaft leads the instructions over an independent Provider.

The most important independent Provider for the Prozessing from general meeting instructions is:

EAT - Institutional Shareholder service undADP ICS-ADP investor Communication service

SonderkonditionenEs exists to deposit in principle the possibility also special conditions for customers (like e.g. that it does not write down because of general meetings for a special customer to be dispatched is)"….

Federal legal gazette evaluation The monitoring of the lining up general meetings is made over the federal legal gazette. The federal legal gazette gives it in written and in electronic form. Since in the different variants also different information can stand, in all rule both of them are evaluated variants. As German Informationsdienstleister for German general meeting information "„WM "“(security information service) is used. Over from most banks the WM-data with the inventory data will automation-represent as high a one as possible adjusted and transferred to a HV-Bearbeitungstool.

Dispatch information of the depositors takes place in accordance with "§ 125 law on limited companies (agenda, if necessary business report, extension of the agenda and the other information).

Preparing these preparing dispatch work takes place after receipt of the documents ordered at the society, at the latest a working-day before expiration of the 12 daily period. At expiration of 12 days after the publication of the agenda of the society in the federal legal gazette the society is to have conveyed the requested documents ("§ 125 exp. 1 AktG). Usually the following test steps take place before dispatch that HV-writing down:

A) Examination "• existence are to be represented or not "• kind (owner or registered share) "• kind of the share (preferred or common stock) "• if necessary right to vote of the preference stock "• lie a counter-petition or an extension of the agenda forwards "• duties to supply information from law on limited companies or KonTraG

b) Subsequently, the order after the AnschreibenJe a service for the customers of the Depotbank to be made available, up to 5 different writing down are used. These are: 1. Agency-write down for Inhaberaktien2. Agency-write 3 down for registered shares (bank fiduziarisch registered in the share register). Write down for Nichtvertretungsanschreiben for Inhaberaktien5. Nichtvertretungsanschreiben for registered shares (bank fiduziarisch registered in the share register). Due to reduced HV-services with many banks, often only Nichtvertretungsanschreiben are dispatched. That is called the individual depositor can by its Depotbank a ticket request itself, which Depotbank will however the instruction of the depositors on the general meeting not represented.

C) Order sales report with all societies, at which the bank offers itself for the agency of the being correct rights. With Nichtvertreteranschreiben a further examination is not compellingly necessary.

The completeness of the sales reports must be examined.

Used term depot bank, derivatives, SWIFT, ADR-Programme, Brokerage, Wertpapier-Leihe, Clearstream

Articles in category "Custody"

We found here 16 articles.

Related Websites

We found here 5 related websites.

• Child Custody & Divorce Resources
  Dealing with child custody & divorce. The issues of child support, alimony, spousal support, annulment, domestic violence, moving away, property rights, ...


• Child Custody 911
  Links to over 100 child custody sites.


• Child Custody Law
  Free child custody law information for individuals and small businesses written by lawyers but in easy to understand legal terms.


• Fathers Rights To Custody
  Information and links pertaining to child custody litigation.


• LII: Law about...Child Custody
  LII: An overview of child custody law with links to key primary and secondary sources, maintained...