How to perform corporate actions

Primary audience: Corporate treasurers, CFOs
Secondary audience: Investor relations teams, asset managers

Corporate actions traditionally require manual spreadsheet calculations, paying agent coordination, multi-day settlement cycles, and reconciliation workflows that fail 15-20% of the time. The platform automates entitlement calculations, snapshot mechanics, and token distributions through programmable smart contracts with sub-second execution and zero calculation errors.

This guide walks through executing corporate actions across asset types—dividend distributions, coupon payments, redemptions, governance votes, and fund distributions—with built-in observability and vault-based settlement.

Before you start

Confirm your asset is deployed and holders have completed identity verification. Corporate actions require funded vaults for cash distributions and configured yield schedules for interest-bearing assets.

Prerequisites:

• Issued tokens per asset-specific guides
• Funded distribution or yield wallet (48-hour minimum before payment date)
• Shareholder communication plan with 30-day advance notice
• Understanding of corporate action type and shareholder impact

Time estimate: 15-30 minutes for governance proposals; 30-60 minutes for dividend distribution with vault funding verification

Required knowledge:

• Corporate finance and shareholder rights
• Token holder communication procedures
• Regulatory requirements for corporate actions (8-K filing, tax reporting)

Understanding automated distributions

The platform eliminates manual entitlement calculations through snapshot-based distribution mechanics. When you configure a dividend, coupon payment, or fund distribution, the system automatically captures holder balances at the record date, calculates pro-rata entitlements for each holder, and executes transfers from the distribution vault to all eligible holders in a single transaction batch.

Traditional distribution execution requires the corporate secretary to manually calculate each shareholder's entitlement, prepare payment instructions for dozens or hundreds of transfers, coordinate with the transfer agent, and reconcile which payments completed. This manual process typically requires 3-5 business days and introduces calculation errors in 15-20% of cases.

The platform automates the entire flow with sub-second execution and zero calculation errors. You configure dates and fund the vault; the system handles snapshot capture, entitlement calculation, atomic settlement, and audit trail recording.

The end-to-end distribution lifecycle

Walk through the complete corporate action lifecycle using a bond coupon payment scenario. This narrative demonstrates how yield automation, vault funding, snapshot mechanics, and atomic settlement combine to eliminate manual servicing work.

When a bond reaches its coupon date

Your company issued $10 million in tokenized bonds with a 5% annual coupon, payable quarterly. The next coupon payment date is April 15. As treasury operator, you need to pay $125,000 in interest to 200+ bondholders without manual entitlement calculations or wire transfer coordination.

The platform's yield module handles this workflow automatically through scheduled payment execution. You configured the yield schedule at bond issuance (payment frequency, rate, denomination token), so the system already knows the payment amount and date. Your only manual tasks are vault funding and payment verification.

Funding the yield vault

Two days before the payment date, navigate to Asset Management > Bonds > [Bond Name] > Yield tab. The platform shows the upcoming payment summary:

• Payment date: April 15
• Required amount: $125,000 USDC
• Current yield wallet balance: $0 USDC
• Status: Underfunded (red indicator)

Transfer $125,000 USDC from your treasury wallet to the displayed yield wallet address. The funding status indicator updates to green when the vault holds sufficient reserves. The platform calculates the required amount automatically based on outstanding bond supply × (annual rate / payment frequency).

Automated snapshot and entitlement calculation

At midnight UTC on the record date (April 13), the platform automatically snapshots all bondholder balances from the unified token registry. The snapshot captures:

• Holder addresses with verified OnchainIDs
• Bond balance per holder at block height
• Compliance status (eligible vs. restricted transfers)
• Total outstanding supply at snapshot time

The system then calculates each holder's pro-rata entitlement:

Holder entitlement = (holder balance / total supply) × total payment amount

For a holder owning 50,000 bonds out of 1,000,000 total supply:

(50,000 / 1,000,000) × $125,000 = $6,250 USDC

These calculations happen automatically in smart contract logic with zero manual intervention. The entitlements are recorded on-chain and become claimable at the payment date.

Payment execution and settlement

On April 15 at the scheduled payment time, the platform executes the distribution:

1. Validates yield vault holds sufficient USDC balance
2. Iterates through the snapshotted holder list
3. Transfers each holder's calculated entitlement from vault to holder wallet
4. Records payment transactions with transaction hashes
5. Updates distribution status to "Complete"
6. Emits payment events for audit trail

All transfers occur atomically in a single transaction batch. Either all holders receive their payments successfully or the entire distribution reverts—there are no partial settlement scenarios that require manual reconciliation.

View payment results in Yield > Payment History. The dashboard shows successful payment count, total distributed amount, failed payment addresses (if any), gas costs, and transaction hash for the distribution batch.

Monitoring and observability integration

After distribution execution, verify completion in the Compliance Metrics dashboard:

• Distribution success rate: 98.7% (197 of 200 holders paid)
• Failed payments: 3 holders (compliance restrictions)
• Total distributed: $123,125 USDC
• Gas cost: $12.50 (0.01% of distribution amount)
• Execution time: 2.3 seconds

Failed payments typically indicate compliance issues (holder identity verification expired, restricted transfer rules). The dashboard links failed addresses directly to the OnchainID verification panel for remediation.

Set up automated alerts in the monitoring panel for:

• Vault funding status (48-hour pre-payment notification)
• Distribution execution completion
• Failed payment threshold (alert if > 5% failure rate)
• Upcoming scheduled payments (7-day advance notice)

Dividend distributions for equity

Pay cash or stock dividends to equity holders using the same snapshot and settlement mechanics. The workflow differs from coupon payments in timing flexibility—you configure custom ex-dividend, record, and payment dates rather than relying on preset yield schedules.

Configuring dividend parameters

Navigate to Asset Management > Equity > [Token Name] > Actions > Distributions > New Distribution.

Configure the dividend structure:

• Distribution type: Cash (token payment) or stock (additional shares)
• Amount per share: $2.50 dividend per equity token held
• Payment token: USDC, USDT, or other ERC-20 denomination asset
• Ex-dividend date: April 1 (last day to purchase shares and receive dividend)
• Record date: April 3 (snapshot date for eligible shareholders)
• Payment date: April 15 (when distribution executes)

The date sequence enforces regulatory settlement timing (T+2 in U.S. markets). Shareholders owning equity tokens at the record date block height receive dividends on the payment date, regardless of whether they sell shares between record and payment dates.

For a company with 1,000,000 outstanding shares paying a $2.50 dividend:

Total distribution = 1,000,000 × $2.50 = $2,500,000 USDC

Fund the dividend wallet with $2,500,000 USDC at least 48 hours before the payment date. The platform verifies funding adequacy and displays a green indicator when reserves are sufficient.

Stock dividends and dilution mechanics

For stock dividends (issuing additional shares instead of cash), configure distribution type "Stock" with a shares-per-share ratio. A 10% stock dividend means each holder receives 0.10 additional shares per share held.

On the payment date, the platform:

1. Snapshots shareholder balances at the record date block
2. Calculates additional shares: holder balance × dividend ratio
3. Mints new shares to each holder's wallet
4. Increases total supply proportionally
5. Records the stock dividend event

A shareholder holding 1,000 shares receives 100 additional shares (1,000 × 0.10). Total supply increases from 1,000,000 to 1,100,000 shares. Per-share value adjusts proportionally to maintain market capitalization—if shares traded at $50 before the dividend, they adjust to approximately $45.45 after ($50 / 1.10).

Stock dividends are dilutive to share price but not to ownership percentage. All shareholders receive proportional increases in share count, maintaining their relative ownership stakes.

Bond redemptions and DvP settlement

Handle bond maturity and early redemption through atomic delivery-versus-payment settlement. The platform's vault architecture ensures simultaneous exchange of bond tokens and denomination assets, eliminating settlement risk.

Processing bond maturity

When bonds reach their maturity date, redemption becomes available to all holders. Navigate to Asset Management > Bonds > [Bond Name] > Actions tab and review maturity details:

• Maturity date: December 31, 2025
• Outstanding bonds: 1,000,000 units
• Face value per bond: $1,000
• Total redemption amount: $1,000,000,000 USDC
• Redemption vault balance: $0 (underfunded)

Transfer the full redemption amount ($1 billion USDC) to the redemption vault address displayed in the panel. This is the platform's critical differentiator—traditional bond redemptions require coordinating wire transfers to hundreds of bondholders over multiple days. The vault architecture enables instant atomic settlement.

After the maturity date passes, click Mature Bond to activate redemption for all holders. This marks the bond as matured on-chain and enables the redemption function for bondholder wallets.

Bondholder redemption flow

Bondholders initiate redemption through the dApp investor portal:

1. Navigate to My Holdings > [Bond Name]
2. Click Redeem Bonds
3. Enter redemption amount (full balance or partial)
4. Confirm transaction

The smart contract executes delivery-versus-payment in a single atomic transaction:

1. Validates holder owns bond tokens to redeem
2. Validates redemption vault holds sufficient USDC balance
3. Burns bond tokens from holder wallet
4. Transfers denomination asset (USDC) from vault to holder wallet
5. Records redemption with transaction hash

Both legs settle simultaneously—the bondholder receives USDC if and only if their bond tokens burn successfully. This atomic settlement eliminates counterparty risk where traditional finance requires 3-5 day settlement windows with credit exposure.

Optional redemption (callable bonds)

For bonds with call provisions, issuers can redeem bonds before maturity at a specified call price. Navigate to Actions > Call Bonds and configure:

• Call date: March 1, 2025 (early redemption date)
• Call price: 102% of par ($1,020 per $1,000 bond)
• Notice period: 30 days (bondholder notification requirement)
• Partial call: Optional (call subset of outstanding bonds)

Issue the call notice 30 days before the call date. The platform notifies bondholders through the dApp and records the call parameters on-chain. On the call date, execute redemption using the same atomic DvP mechanics—bond tokens burn and call price transfers from vault to holders simultaneously.

Callable bond features enable dynamic capital structure management without requiring bondholder consent for each redemption.

Governance proposals and voting

Execute shareholder voting with snapshot-based voting power, delegation mechanics, and on-chain execution for approved proposals. The governance module eliminates manual vote tallying and enforces quorum and approval thresholds programmatically.

Creating a governance proposal

As a shareholder holding the minimum proposal threshold (configurable percentage of total supply), you can submit governance proposals. Navigate to Asset Management > Equity > [Token Name] > Governance > New Proposal.

Configure the proposal structure:

• Title: "Increase authorized share capital to 5 million shares"
• Description: Detailed rationale, board recommendation, shareholder impact analysis
• Voting options: For, Against, Abstain (or custom multi-choice options)
• Voting period: 7 days (duration proposal remains open)
• Quorum: 50% (minimum participation required for valid vote)
• Approval threshold: 66% (supermajority requirement for passage)
• Executable action: Optional on-chain transaction if proposal passes

Submit the proposal. The platform captures the current block height as the snapshot block—voting power for all shareholders is determined by their token balances at this exact block, preventing vote buying after proposal submission.

Snapshot mechanics and voting power

When a proposal is created at block height 12,345,678, all voting power calculations reference balances at that block. If a shareholder held 10,000 tokens at the snapshot block but sells 5,000 tokens the next day, they retain 10,000 voting power for this proposal.

This snapshot immutability prevents manipulation where shareholders acquire tokens solely to vote, then immediately sell after voting. Traditional shareholder meetings require record dates weeks in advance to produce physical shareholder lists—the platform captures voting power atomically at proposal creation with zero lead time.

Shareholders view their voting power in the governance panel:

• Direct balance: 10,000 tokens held at snapshot block
• Delegated to address: None
• Delegated from others: 5,000 tokens from 3 delegators
• Total voting power: 15,000 votes

Vote delegation and proxy voting

Shareholders delegate voting power to other addresses (investment advisors, board members, activist investors) without transferring token ownership. Navigate to Governance > Delegate and enter the delegate address.

The delegation applies to all future proposals until revoked. Delegators retain token ownership and transfer rights—only governance voting power is delegated. The delegate votes with combined direct holdings plus delegated power.

When the delegate votes on the "Increase authorized capital" proposal:

1. Select voting option: For
2. Confirm transaction
3. Platform records vote with timestamp and transaction hash
4. Vote cannot be changed (immutable after submission)
5. Voting power consumed: delegate's direct holdings + all delegated power

Delegation patterns enable institutional investors to consolidate voting power, board members to represent retail shareholders, and decentralized governance coordination.

Tallying votes and executing proposals

After the 7-day voting period expires, review results in Governance > [Proposal Name]:

• Total votes cast: 750,000 (75% of 1,000,000 supply)
• Quorum achieved: Yes (required 50%, actual 75%)
• For: 495,000 votes (66%)
• Against: 255,000 votes (34%)
• Abstain: 0 votes
• Approval threshold met: Yes (required 66%, actual 66%)
• Proposal status: Passed

The proposal passed by exactly meeting the 66% supermajority threshold. If an executable action was configured (e.g., call a smart contract function to increase max supply), click Execute Proposal to trigger the on-chain transaction.

Some governance configurations include execution delays (timelocks) where approved proposals cannot execute immediately. This allows shareholders to exit their positions if they disagree with the outcome before the change takes effect—a common pattern in decentralized governance to prevent minority shareholder exploitation.

Token splits and consolidations

Adjust token denomination without changing ownership percentages. Stock splits increase share count and decrease per-share value proportionally; reverse splits decrease share count and increase per-share value.

Executing a stock split

Companies split shares to improve liquidity and accessibility when per-share prices become high. A 2-for-1 split doubles share count and halves per-share value.

Navigate to Asset Management > Equity > [Token Name] > Actions > Token Split and configure:

• Split numerator: 2 (new shares per old share)
• Split denominator: 1 (old shares required)
• Effective date: May 1, 2025

Review the split impact:

• Current total supply: 1,000,000 shares at $50 per share
• Post-split total supply: 2,000,000 shares at $25 per share
• Market cap: $50 million (unchanged)

A shareholder holding 1,000 shares receives 2,000 shares after the split. Their ownership percentage remains 0.1% of total supply (1,000 / 1,000,000 = 2,000 / 2,000,000).

Click Execute Split on the effective date. The platform:

1. Snapshots current holder balances
2. Mints additional tokens to each holder (balance × numerator / denominator)
3. Updates total supply (current supply × numerator / denominator)
4. Records split event with old supply, new supply, and split ratio

The split executes atomically—all shareholders receive their additional shares simultaneously in a single transaction batch.

Reverse splits and fractional handling

Reverse splits decrease share count to increase per-share value, often used when stock prices fall too low. A 1-for-10 reverse split reduces share count by 90% and increases per-share value 10×.

Configure the split with numerator 1 and denominator 10. A shareholder holding 1,000 shares receives 100 shares after the reverse split. Their ownership percentage remains unchanged.

Reverse splits create fractional share challenges when shareholders hold amounts not evenly divisible by the split denominator. A holder with 1,055 shares in a 1-for-10 reverse split should receive 105.5 shares, but blockchain tokens typically use integer arithmetic.

The platform handles fractional shares by rounding down to the nearest whole token and tracking fractional entitlements off-chain. Shareholders receive either:

• Cash payment for fractional share value (if enabled)
• Fractional share certificate redeemable in future transactions
• Automatic rounding up to next whole share (issuer subsidizes fractional value)

Specify fractional handling in the split configuration to ensure consistent treatment across all shareholders.

Fund distributions and NAV adjustments

Distribute fund income, capital gains, or return of capital to unit holders. Fund distributions follow the same snapshot and entitlement mechanics as equity dividends but integrate with NAV (net asset value) updates.

NAV-based income distributions

Investment funds distribute income periodically (quarterly, annually) based on realized gains, dividend income, or interest earned. Navigate to Asset Management > Funds > [Fund Name] > Distributions > New Distribution.

Configure the distribution:

• Distribution type: Income, capital gains, or return of capital
• Amount per unit: $1.50 per fund share
• Distribution token: USDC
• Ex-date: June 1 (last day to own fund for distribution)
• Record date: June 3 (snapshot date)
• Payment date: June 15 (distribution date)

For a fund with 500,000 outstanding units paying $1.50 per unit:

Total distribution = 500,000 × $1.50 = $750,000 USDC

Fund the distribution wallet with $750,000 USDC before the payment date. Execute the distribution using the same automated snapshot and settlement mechanics described in the dividend section.

NAV impact and accounting treatment

Fund distributions reduce NAV per unit by the distribution amount. If the fund's pre-distribution NAV was $25.00 per unit, the post-distribution NAV adjusts to $23.50 ($25.00 - $1.50).

The NAV adjustment reflects the economic reality that fund assets decreased by the distributed amount. Total fund value decreases from $12.5 million (500,000 units × $25.00) to $11.75 million (500,000 units × $23.50), with the $750,000 difference distributed to unit holders.

Income distributions are taxable events for investors (dividend income, short-term capital gains, or long-term capital gains depending on source). Return of capital distributions reduce investor cost basis and may defer taxation until unit redemption.

Distribution reinvestment option

Enable automatic reinvestment where unit holders can elect to receive additional fund shares instead of cash distributions. Configure the distribution with Reinvestment Enabled.

Unit holders opt in to reinvestment through the dApp investor portal before the ex-date. On the distribution date:

1. Calculate each holder's distribution amount
2. Opt-in holders: Mint new units at current NAV instead of USDC transfer
3. Opt-out holders: Transfer USDC distribution
4. Total fund units increase by reinvested amount

A holder entitled to a $1,500 distribution with post-distribution NAV of $23.50 receives 63.83 new fund units ($1,500 / $23.50). The fund does not transfer USDC—it issues equity instead, simplifying operational cash management.

Reinvestment benefits unit holders through dollar-cost averaging (acquiring additional units automatically) and benefits fund operators by reducing cash outflows and maintaining AUM (assets under management).

Observability and monitoring workflows

Integrate corporate action execution with the platform's observability stack to verify funding status, distribution completion, and holder notifications.

Distribution dashboard metrics

The Corporate Actions dashboard (navigate to Analytics > Corporate Actions) displays:

• Upcoming actions: Scheduled distributions, coupon payments, maturity dates
• Funding status: Vault balance vs. required amount for each pending action
• Execution history: Completed distributions with success rates, gas costs, transaction hashes
• Failed payment remediation: Holder addresses requiring compliance verification or wallet updates

Set up automated alerts for:

• Underfunded vaults: 48-hour pre-payment notification if vault balance insufficient
• Distribution completion: Notification when automated distribution executes successfully
• Failed payment threshold: Alert if > 5% of holders experience payment failures
• Upcoming deadlines: 7-day advance notice for ex-dividend dates, record dates, payment dates

Audit trail and compliance reporting

All corporate actions record immutable audit trails on-chain:

• Holder snapshots with block height references
• Entitlement calculations with per-holder amounts
• Distribution transactions with timestamps and gas costs
• Governance proposals with vote tallies and execution status

Export audit reports from Analytics > Reports > Corporate Actions. The platform generates CSV or PDF reports suitable for regulatory filings (8-K current reports, proxy statements, tax reporting).

The unified registry architecture ensures compliance verification occurs at distribution time—holders without verified OnchainIDs or with transfer restrictions automatically fail distribution attempts, preventing inadvertent payments to non-compliant investors.

Best practices

Communication and timing

Announce corporate actions 30+ days in advance when possible. Provide clear documentation explaining the action's purpose, shareholder impact, and key dates. Send reminder notifications before ex-dividend dates and record dates. Communicate distribution results within 24 hours of execution.

Vault funding and reserves

Fund distribution wallets 48-72 hours before payment dates to allow verification time. Maintain 5-10% reserve buffers above calculated requirements to account for rounding and late acquisitions. Monitor vault balances continuously through the dashboard's funding status panel. Set up automated alerts for low balance thresholds.

Execution consistency

Execute distributions on scheduled dates consistently to establish investor confidence. Configure automated execution for recurring payments (quarterly coupons, monthly fund distributions) to eliminate manual workflow dependencies. Verify distributions complete successfully through the observability dashboard. Investigate failed payments immediately—most indicate compliance issues requiring identity verification updates.

Record keeping and compliance

Maintain immutable audit trails for all corporate actions through the platform's on-chain recording. Archive shareholder snapshots for each action (required for dispute resolution). Document board approvals and authorization workflows for governance and regulatory compliance. Retain records per regulatory requirements (typically 7 years for securities, longer for tax documentation).

Regulatory coordination

Ensure corporate actions receive proper board approval before execution. File required regulatory disclosures (8-K current reports for material actions, proxy statements for governance proposals, tax reporting for distributions). Coordinate with legal counsel on disclosure requirements and shareholder communication content. Verify compliance with transfer restrictions and accreditation requirements before distributions.

Troubleshooting

Distribution execution fails with insufficient balance error

Verify the distribution wallet holds the full required amount plus 5-10% buffer. Check the Funding Status panel in the distribution details—it displays required amount vs. current vault balance. Transfer additional denomination assets to the vault address and retry execution. Set up funding status alerts to prevent recurrence.

Holders report not receiving distributions

Confirm holder addresses have verified OnchainIDs in the identity registry. Navigate to Identity Management > search holder address > verify claims are up to date. Check transfer restriction rules—some compliance configurations prevent distributions to addresses with expired accreditation. Review the Failed Payments section in distribution results for affected addresses and remediation steps.

Governance proposal creation reverts with threshold error

Verify your address holds the minimum proposal creation threshold at current block height. The threshold is typically 1-5% of total supply to prevent spam proposals. Check that voting is enabled on your equity token—navigate to Token Settings > Governance > confirm Voting Enabled is true. Ensure quorum and approval threshold percentages are valid (between 0-100%).

Vote transaction fails with no voting power error

Confirm you held tokens at the proposal creation block (snapshot block). Voting power is determined by balance at snapshot time, not current balance. If you acquired tokens after the proposal was submitted, you cannot vote on that specific proposal. Check your voting power in the proposal details panel—it displays your balance at the snapshot block.

Bond redemption function disabled after maturity

Verify the bond's maturity date has passed by checking Maturity Date in bond details. Ensure the bond status is set to Matured—navigate to Actions > Mature Bond and click to activate redemption if needed. Confirm the redemption vault is funded with sufficient denomination assets (outstanding bonds × face value). Check that your wallet holds bond tokens to redeem.

Coupon payment executes with zero amounts

Verify the yield schedule is configured correctly with annual rate, payment frequency, and denomination token. Navigate to Yield > Schedule Configuration to review parameters. Check that the yield wallet holds sufficient denomination assets for the calculated payment. Confirm bondholders have verified OnchainIDs—the system skips distributions to non-compliant addresses. Review accrual calculations in the Yield tab to ensure daily accrual is tracking correctly.

For additional help, see Troubleshooting or contact support with transaction hashes and error messages from failed operations.

Next steps

• Issue a bond - Configure yield schedules and redemption mechanics for interest-bearing securities
• Issue equity - Set up governance modules and shareholder voting capabilities
• Issue a fund - Execute NAV updates and automated income distributions
• Manage investors - Coordinate shareholder communications about corporate actions
• Compliance certification - Understand transfer restrictions and distribution compliance requirements
• Contract reference - Review smart contract functions for corporate action execution