Allotment and Transfer of Shares
Changes to the class of shares or changes to member’s holdings must be recorded in the ASIC register. All companies need to advise ASIC when they issue or cancel shares and when they make changes to their share structure. These changes can be the result of the company issuing more shares, a person acquiring shares from another member, another member ceasing to hold a portion or all of their shares, or any combination of these.
The shares register must detail information about shares including:
- the date of every allotment (or issue) of shares
- the number of shares in each allotment
- the class (or classes) of shares
- the share numbers (if any), or share certificate numbers (if any), of the shares
- whether or not the shares are fully paid (including the amount paid on the shares and the amount unpaid on the shares, if any)
Issue of shares
An issue of new shares to the company is basically adding new shares to increase the total shares of the company. For example a company may have 100 shares and you wish to issue another 50 new shares bringing the total number of shares to 150. The new shares can be of any class and have any rights.
When a company issues shares, ASIC must be informed within 28 days of the allotment. ASIC asks for the following information:
- number of shares issued
- class to which each share belongs
- amount (if any)* paid, or agreed to be considered to be paid, on each of the shares
- amount unpaid (if any) on each of the shares
- the members to whom the shares were allocated
- the share holding for each member
*Shares can be paid in full or partially paid. A fully paid share means a share on which no amount remains unpaid. A company may set the terms on which the shares are issued and the rights and restriction attached to the shares.
Transfer of shares
A transfer of shares is when the quantity of the company’s shares remains the same and only the quantity of the shareholder’s shares is reduced or increased. For example, John has 100 shares and he decides to transfer 50 of his shares to his wife. The total volume of shares withn the company remains the same, just John’s quantity reduces by 50 shares and his wife now has 50 shares.
If the company was not set up by Shelcom we do charge an establishment fee of $120 in addition to the change fee. The first two people/entities are included in the fees however every additional person/entity will be charged at $60 each.