If your company currently has a sponsored ADR, GDR, or HKDR Program, you may be losing potential revenues, failing to receive the full range of depositary services available under the program, or failing to protect your company adequately from legal risk. Depositary Management Corporation can ensure that your depositary receipt program is properly structured and monitored to address these concerns. Some of the key issues relating to sponsored ADR/GDR/HKDR programs are summarized below. To learn more about how your company can better manage and profit from its depositary receipt program, contact us.

Following are some of the common challenges issuers face in establishing and maintaining profitable depositary receipt programs and leveraging the full potential of their programs.

• Depositary banks can derive profits from a DR program through many methods that are not apparent to issuers.

Although many ADR/GDR issuers receive financial contributions and expense reimbursements from their depositary service provider, most companies fail to derive the full value to which they should be entitled from their depositary receipt programs. Depositary banks are able to generate revenues from multiple sources related to the administration of an ADR program, the vast majority of which are not transparent to companies. As a result, your depositary may be earning substantial profits that are not equitably shared with, or made available to, your company and/or are taken by your depositary at the expense of your security holders.

• Many issuers are unaware of the economic incentives and depositary services they should fairly expect from their depositary banks.

Depositary Management Corporation has the expertise to obtain the best possible mix of financial incentives and service levels and other entitlements for your company. With over 30 years of legal and business expertise in the DR industry, our principals are uniquely qualified to assess all aspects of your program. We will determine:
  • whether you are receiving appropriate economic benefits
  • whether the proper level of depositary services is being provided to your company and its DR holders
  • whether you are adequately protected from legal risk under the contractual provisions covering the program
If desired, we will conduct a thorough and efficient Request for Proposals to solicit offers from competing depositary banks, which we will meticulously review and evaluate. We will advise whether the proposals should be enhanced and, if necessary, will negotiate on your behalf to improve the terms of the proposals. Based on this process we will make a recommendation as to which proposal offers the best mix of financial incentives and service levels for your company, and advise whether it is in the best interests of your company and its shareholders to move your program from your current provider. If you decide to change depositaries our experts will ensure that your program transitions seamlessly to the sponsoring bank of your choice.

• Potential legal risks may not be fully addressed under the terms of your ADR or GDR program.

As the sponsor of an ADR or GDR program, your company takes on risk and potential liability for claims brought by holders of depositary receipts and other market participants. The legal experts at Depositary Management Corporation have an in-depth understanding of the ways in which your company can reduce these risks and liabilities through your contractual arrangements, helping you secure the highest degree of protection from litigation risk for your company. We will review your operative DR agreements, recommend any changes that could help reduce and/or minimize risk and, if requested, assist in the re-negotiation of such agreements with your depositary.


Depositary Management Corporation will add value to your ADR/GDR/HKDR program without any direct cost to your company. To learn how your company can benefit from our expertise with no up-front financial commitment, click here to read about our competitive fee arrangements.