tant a titre irreductible qur reductible

English translation: which are not subscribed on the basis of right to shares already owned or new shares

12:07 Apr 18, 2005
French to English translations [PRO]
Bus/Financial - Law (general)
French term or phrase: tant a titre irreductible qur reductible
Articles of association, concerning shares "le conseil pourra repartir les actions en numeraires qui ne seraient pas soucrites tant à titre irreductibelque reductible".
Thanks for help
dholmes (X)
France
Local time: 03:00
English translation:which are not subscribed on the basis of right to shares already owned or new shares
Explanation:
The basis of shares...
When you receive additional shares as a result of a non-taxable stock dividend or split, your total basis in your stock remains the same. ***The basis is divided among the shares you already owned and the new shares in proportion to the value of the shares**. In the usual case, where the new shares are exactly the same as the old ones, the value is the same, and basis is allocated equally to each share.

Example: You own 400 shares of XYZ with a basis of $33 per share (total basis of $13,200). XYZ declares a 10% stock dividend. You receive 40 additional shares and now own a total of 440 shares. Your total basis is unchanged, so your basis per share is now $13,200 divided by 440, or $30.

Example: You own 150 shares of ABC with a basis of $24 per share, and another 100 shares of ABC with a basis of $28 per share. The stock splits 2-for-1. After the split, you own 300 shares with a basis of $12 per share, and 200 shares with a basis of $14 per share. (This is true even if you receive a single certificate representing your 250 new shares.)

the irréductible...are the new shares and the reductible are the already owned shares...

souscrire à titre irréductible= to subscribe to shares on the basis of the right to new shares
souscrire à tire réductible= to subscribe to shares on the basiss of the right to existing shares..

What makes this difficult is that the French does explicitly use the word share rights here...but it is implied by a titre de and irreductibles..what is irredutible is the rights to the share..share rights...it's tricky wicky



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Note added at 1 hr 13 mins (2005-04-18 13:21:05 GMT)
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correx: on the basis of THE right to
Selected response from:

Jane Lamb-Ruiz (X)
Grading comment
Thnak Jane, it's the first time I've really understood what they mean.Thanks for your helmp and time !
Cheers
Dianne
4 KudoZ points were awarded for this answer



Summary of answers provided
4 +3both as fixed entitlement and as (reducible) proportion of total subscriptions
Christopher RH
5which are not subscribed on the basis of right to shares already owned or new shares
Jane Lamb-Ruiz (X)


Discussion entries: 1





  

Answers


1 hr   confidence: Answerer confidence 5/5
which are not subscribed on the basis of right to shares already owned or new shares


Explanation:
The basis of shares...
When you receive additional shares as a result of a non-taxable stock dividend or split, your total basis in your stock remains the same. ***The basis is divided among the shares you already owned and the new shares in proportion to the value of the shares**. In the usual case, where the new shares are exactly the same as the old ones, the value is the same, and basis is allocated equally to each share.

Example: You own 400 shares of XYZ with a basis of $33 per share (total basis of $13,200). XYZ declares a 10% stock dividend. You receive 40 additional shares and now own a total of 440 shares. Your total basis is unchanged, so your basis per share is now $13,200 divided by 440, or $30.

Example: You own 150 shares of ABC with a basis of $24 per share, and another 100 shares of ABC with a basis of $28 per share. The stock splits 2-for-1. After the split, you own 300 shares with a basis of $12 per share, and 200 shares with a basis of $14 per share. (This is true even if you receive a single certificate representing your 250 new shares.)

the irréductible...are the new shares and the reductible are the already owned shares...

souscrire à titre irréductible= to subscribe to shares on the basis of the right to new shares
souscrire à tire réductible= to subscribe to shares on the basiss of the right to existing shares..

What makes this difficult is that the French does explicitly use the word share rights here...but it is implied by a titre de and irreductibles..what is irredutible is the rights to the share..share rights...it's tricky wicky



--------------------------------------------------
Note added at 1 hr 13 mins (2005-04-18 13:21:05 GMT)
--------------------------------------------------

correx: on the basis of THE right to

Jane Lamb-Ruiz (X)
Specializes in field
Native speaker of: Native in EnglishEnglish, Native in PortuguesePortuguese
PRO pts in category: 610
Grading comment
Thnak Jane, it's the first time I've really understood what they mean.Thanks for your helmp and time !
Cheers
Dianne

Peer comments on this answer (and responses from the answerer)
neutral  Christopher RH: I don't know where this came from. Though the suggested term could conceivably be construed to be right for "reductible", the explanation is so wrong as to be astounding.
18 hrs
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19 hrs   confidence: Answerer confidence 4/5Answerer confidence 4/5 peer agreement (net): +3
both as fixed entitlement and as (reducible) proportion of total subscriptions


Explanation:
"à titre irreductible": this refers to the shareholders (fixed, i.e. non-reducible) subscription rights: a new share issue is made with each shareholder entitled to a set number of new shares (say 1 new share for every 5 currently held)

"à titre reductible": this means that each person who subscribes to the issue (i.e. shareholders and warrant holders) can subscribe for any number of shares but the total number allotted will be reduced (in the event of over-subscription) on a proportional basis. The rules for determining the proportional reduction can vary, but generally aim to balance off the subscriptions received on the basis of (i) the subcribers' respective "fixed" subscription rights, and/or (ii) the amount requested by each subscriber.

For an example in practice:
http://www.cmf.org.tn/uib04.htm

"• A titre irréductible
A raison de dix huit (18) actions nouvelles pour trente cinq (35) actions anciennes.
Les actionnaires qui n’auraient pas un nombre d’actions anciennes correspondant à un nombre entier d’actions nouvelles, pourront soit acheter soit vendre en bourse les droits formants rompus, sans qu’il puisse en résulter une souscription indivise. L’UIB ne reconnaît qu’un seul propriétaire pour chaque action..
• A titre réductible
En même temps qu’ils exercent leurs droits à titre irréductible, les actionnaires et/ou les cessionnaires de droits de souscription en bourse pourront, en outre, souscrire à titre réductible, le nombre d’actions nouvelles qu’ils veulent. Leurs demandes seront satisfaites en utilisant les actions nouvelles qui n’auraient pas été, éventuellement, absorbées par les demandes à titre irréductible. Chaque demande sera satisfaite au prorata du nombre de ses droits de souscription exercés à titre irréductible et en fonction du nombre de ses droits de souscription exercés à titre irréductible et en fonction du nombre d’actions nouvelles disponibles."



I have not yet come up with a "perfect" phrase to translate this. The suggested answer above is more descriptive than anything else, but at least it has the merit (in my humble opinion!) of conveying the meaning faithfully.

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Note added at 19 hrs 50 mins (2005-04-19 07:57:26 GMT) Post-grading
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I should have added: share issues usually combine both \"reductible\" and \"irreductible\" subscriptions: shares will first be allotted for the entire amount of the \"fixed\" entitlements, and any shares not covered by these subscriptions will then be allotted according to the \"reducible\" subscriptions.

By the way, I would avoid \"preemptive rights\" as a translation for \"irreductible\", even though the notions do correspond very closely.

Christopher RH
Local time: 03:00
Specializes in field
Native speaker of: Native in EnglishEnglish
PRO pts in category: 164

Peer comments on this answer (and responses from the answerer)
agree  Albert Gomperts: this is a good explanation
2125 days

agree  Wendy Cummings: Somewhat after the event, but the best explanation I've found so far
3223 days

agree  writeaway: you are undoubtedly right. hopefully others will use your answer
4776 days
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