Delisted Shares

A share delisting is when a company's shares are removed from a stock exchange and can no longer be traded there.

This can happen voluntarily (by the company’s choice) or involuntarily (by the exchange if the company no longer meets listing requirements).

You can take part in a delisting only if it is voluntary.

• Voluntary delisting - You may be given the choice by the company to vote for or against delisting their shares.

• Involuntary delisting - No option to vote for or against; delisting will happen regardless of shareholder wishes.

The company announces its intention (or is notified by the exchange) to delist.

Typically, we will be notified in advance and will provide you with the option to sell your shares before the delisting happens.

After the notice period, the shares are officially removed from the exchange.

If you hold shares in the delisted company, those shares remain in your account.

The shares may still be tradable on over-the-counter (OTC) markets or not at all, depending on the company’s future plans.

Some companies may offer a matched bargain facility. This is a system for trading delisted or suspended stocks that matches a buy order directly with a sell order, rather than using a market maker.

If there is no matched bargain facility you are able to gift shares to charity.

Companies may delist for several reasons:

• Voluntarily: To go private, reduce costs, or restructure.

• Involuntarily: Failing to meet listing rules (e.g. low share price, financial issues, or regulatory problems).

• After a merger, acquisition, or going private transaction.

HL will continue to hold delisted stock for you until either:

- The stock relists, or

- The company goes into liquidation or administration.

A stock will be removed from your account only after administration or liquidation and HMRC has declared the shares as nil value.

Once this happens, we will remove the stock from your account. If we receive notification of a liquidation payment, then we will accredit to your account and send confirmation.

Delisted stock cannot be held in an ISA. This is because HMRC regulation states that for a stock to be eligible to be held within an ISA, it must be listed on a recognized exchange.

You will need an active Fund and Share Account for the delisted stock to be transferred into. This can be opened online, by post, or by phone.

If you do not have an active Fund and Share account, the stock will move into an inactive account, which you can activate by contacting our Helpdesk.

Shares

Delisted shares which have been moved to a Fund and Shares account or could not be moved (held in a SIPP, for example) will no longer incur HL's annual management charge.

Suspended stocks will still also not attract HL's management charge for the time they are suspended.

Funds

Because funds (unit trusts, OEICs, etc) don't trade on a live market, they cannot delist.

Should a fund become untradeable for any reason, HL will continue to charge you to hold this.

Some stock is suspended rather than delisted. This means that it is still recognised on the exchange it is listed on but is currently untradeable.

There will always be a regulatory announcement explaining the reason for a suspension.

You have the option to gift delisted stock to charity. Alternatively, you can continue to hold delisted stock until HMRC declares that the stock is worthless. Once this has been declared by HMRC, the stock will be removed from your account and will no longer be visible.

Only when a stock is declared nil-value by HMRC is a disposal event triggered. If you hold delisted stock or gift to charity, no disposal is actioned and so there are no losses to offset.

• Shareholders: Can still own their shares, but selling them may be harder and pricing less transparent.

• Company: May reduce regulatory and reporting obligations, but loses access to public capital markets and may face reputation risks.

Key points to remember:

• Delisting removes a company's shares from a stock exchange.

• Shares can still be owned but may be harder to trade.

• No action is usually required from shareholders.

• Can be voluntary or forced, and may affect share liquidity and value.