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Corporate action events

CMET: Court Meeting

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CMET announces a meeting of security holders that is convened by a court, most often to vote on a scheme of arrangement such as a takeover or restructuring. Holders can vote for or against, abstain or appoint a proxy.

Code
CMET
Usually announced as
VOLU

What CMET means

In several common law markets, a company can reorganise or be taken over through a scheme of arrangement, which needs the approval of each class of holders at a meeting ordered by the court and then the court’s sanction. That court-ordered meeting is announced as CMET. It is often held on the same day as a general meeting that approves related resolutions.

The vote itself does not move securities. If the scheme is approved and sanctioned, it becomes binding on all holders, and the shares are then transferred or cancelled in exchange for cash or new securities in a separate event.

When you see it

  • An MT564 with :22F::CAEV//CMET, announced as VOLU in the SMPG grid, with voting options such as CONY, CONN, ABST, PROX, SPLI and NOAC, and the meeting date, record date and voting deadlines. A court approval date (:98a::COAP) may follow. Events that belong to a scheme can carry :22F::ADDB//SCHM.
  • CMET is one of the meeting codes next to MEET (annual general meeting), OMET, XMET and BMET. The economic outcome of a scheme is usually announced as MRGR, TEND or EXOF.
  • In ISO 20022, CMET is not one of the corporate action event types used in seev.031. It is a meeting type in seev.001 (meeting notification), Mtg/Tp = CMET.

What to do next

  • Pass the scheme documents and the voting deadline to the client. If the client votes, send an MT565 with the vote and the quantity before the account servicer’s deadline.
  • Link the meeting to the reorganisation event that follows, so the client knows the timetable for delisting and payment if the scheme is sanctioned.

Where it appears in MT and ISO 20022

MT (ISO 15022)

  • MT564 sequence A (GENL): :22F::CAEV//CMET, with :22F::CAMV//VOLU.
  • MT565, MT567 and MT568 sequence A: :22F::CAEV//CMET.

MX (ISO 20022)

  • Not a value of CorpActnGnlInf/EvtTp/Cd in seev.031 to seev.039: the ISO 20022 corporate action event type code lists leave CMET out.
  • seev.001 Meeting Notification: Mtg/Tp = CMET (MeetingType4Code); votes are sent with seev.004 (meeting instruction).