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Manufactured payments in respect of Loaned Securities - GMSLA Provision: Difference between revisions
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Manufactured payments in respect of Loaned Securities - GMSLA Provision (view source)
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===Court-ordered compensation=== | ===Court-ordered compensation=== | ||
Easy enough for standard {{gmslaprov|dividend}}s, where this is all run-of-the-mill stuff and the {{gmslaprov|Income Record Date}} is within a month or so of the {{gmslaprov|Income}} payment date. But what about extraordinary distributions of the kind ordered by courts to compensate minority shareholders after years of litigation over some kind of botched merger or acquisition? This can and does happen. | Easy enough for standard {{gmslaprov|dividend}}s, where this is all run-of-the-mill stuff and the {{gmslaprov|Income Record Date}} is within a month or so of the {{gmslaprov|Income}} payment date. But what about extraordinary distributions of the kind ordered by courts to compensate minority shareholders after years of litigation over some kind of botched merger or acquisition? This can and does happen. | ||
Is court ordered compensation “{{gmslaprov|income}}” in the sense meant by the {{gmsla}}? Based on the definition of {{gmslaprov|Income}}, yes: | |||
:''{{GMSLA 2010 Income}}''<br> | :''{{GMSLA 2010 Income}}''<br> | ||
Furthermore, clause {{gmslaprov|6.2}} ({{gmslaprov|Manufactured payments in respect of Loaned Securities}}) puts you right in the zone here, providing as it does (in a nutshell): ''{{Nutshell GMSLA 6.2}}''. | |||
What about limitation periods? Unlikely to help: if the amount only becomes due ten years after the original incident that gave rise to it — modern commercial litigation does tend to rumble on a bit — but, in the elegant words of the [[Limitation Act 1980]], “an action founded on simple {{tag|contract}} shall not be brought after the expiration of six years from the date on which the [[cause of action]] accrued”. No cause of action existed until the court award was made. | |||
What about [[Limitation Act 1980|limitation periods]]? Unlikely to help: if the amount only becomes due ten years after the original incident that gave rise to it — modern commercial [[litigation]] does tend to rumble on a bit — but, in the elegant words of the [[Limitation Act 1980]], “an action founded on simple {{tag|contract}} shall not be brought after the expiration of six years from the date on which the [[cause of action]] accrued”. No cause of action existed until the court award was made, so the clock only just started running. | |||