2020-07-13 Meeting notes
- Elisa Kendall
Date
Attendees
Agenda
1) Use Case reminder
2) Where we are on our road map.
3) Open Action Items
4) JIRA Issues Review - https://jira.edmcouncil.org/projects/SEC/issues/SEC-7?filter=allopenissues
5) Todays content discussion.
SMIF OWL-UML
SKOS
RDF/S
6) For next week.
Proceedings:
Went back to review of preferred shares, and what is meant by 'redeemable' in the context of a preferred share. From Investopedia:
In finance, redemption describes the repayment of any money market fixed-income security at or before the asset's maturity date. Investors can make redemptions by selling part or all of their investments such as shares, bonds, or mutual funds.
From another definition related to accounting:
Redemption of preference shares means returning the preference share capital to the preference shareholders either at a fixed date or after a certain time period during the life time of the company provided company must complied certain conditions.
And:
Redeemable preferred stock, also known as callable preferred stock, is a type of preferred stock that has a callable provision that allows the issuing company to buy back the stock at a fixed price after a specified period of time.
We currently define redemption provision as a subclass of principal repayment terms, which is essentially correct, but principal repayment terms is a subclass of debt terms, which may be too limiting. Perhaps redemption on its own needs to move up the ladder but leave principal repayment where it is.
Preferred shares are fixed income securities, with dividend payments rather than interest payments. Currently, we treat fixed income securities as a subclass of tradable debt instruments, which is really the issue. A preferred share should be both an equity instrument and a fixed income security ... so we need to do some refactoring to fix this.
Fixed income security is currently a subclass of tradeable debt instrument. It should really be a child of security - then a preferred share and many tradable debt instruments are fixed income securities as are some mutual funds. The concept of redemption also applies to fixed income securities, although they don't have a 'maturity date' per se... but, redeemable preferred shares have a call provision.
We reached out to a couple of banks to attempt to find an SME ... hopefully someone will be available to assist in the next week or so.