An American Depositary Receipt (ADR) is a negotiable US dollar denominated certificate representing ownership of shares in a non-US company. AkzoNobel’s ADRs represent AkzoNobel’s ordinary shares deposited with the depositary bank, to underlie such certificates and carry the rights attached to them as detailed in the Depositary Agreement.
Holders of ADRs receive dividends in US dollars and have the right to vote on shareholders resolutions. ADRs were specifically designed to facilitate the purchase, holding and sale of non-U.S. securities by US investors. ADRs are also referred to as American Depositary Shares (ADSs), these terms are interchangeable.
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|Structure||Sponsored Level I ADR|
AkzoNobel’s ADR program is sponsored by Deutsche Bank Trust Company Americas (Deutsche Bank). As the depositary bank, Deutsche Bank performs the following roles for ADR holders as further detailed in the Deposit Agreement.
- Records and maintains the register of ADR holders;
- Is the stock transfer agent;
- Distributes dividends in U.S. dollars;
- Facilitates the voting process and the exercise of the voting rights of ADR holders at any Company General Meeting if permitted by the Company and the Depositary Agreement;
- Issues and cancels AkzoNobel American Depositary Shares (ADSs);
- Distributes AkzoNobel circulars and General Meetings (including Annual General Meeting) documentation, if applicable.