Section 793 notice

Prime Brokerage Anatomy™ →Go uptown {{{2}}} There is no industry standard prime brokerage agreement, so this is not so much an anatomy as a collection of resources about an amorphous subject. Hedge fund | AIFMD | Depositary | Prime broker | prime brokerage agreement | synthetic prime brokerage | margin lending | custody asset | CASS Anatomy | reuse & rehypothecation | hedge fund | leveraged alpha | greeks | short selling Index: Click ᐅ to expand: Prime Brokerage Securities Financing Investment Strategies Tell me more Sign up for our newsletter — or just get in touch: for ½ a weekly 🍺 you get to consult JC. Ask about it here.

A section 793 notice is issued under Template:Ukleg, a provision which permits a public company to require anyone who might be "interested" in its shares to answer written questions about the nature of their interests. They are often sent to custodians — especially those like prime brokers whose clients include activist shareholders like hedge funds.

Companies may use section 793 notices to track possible stake-buildings exercise or takeover activity, but also to explain unexpected share movement or simply as routine house keeping of their register.

An “interest” under the act includes those held by spouses, trusts, offshore vehicles, nominees and coordinated arrangements between apparently unconnected individuals acting in concert and so on. Basically it is meant to get around any sneaky subterfuge and creative use of the corporate veil.

If you don't respond to a s793 notice the company can "block" the shares you hold, preventing any underlying shareholder from voting or transferring its interests, until the answers are provided.