A company may decide to reduce or increase the total shares. There can be various strategic reasons behind such decisions. Irrespective of the reason, the process of change in share capital structure is very exhaustive. The shareholders must be informed and a resolution must be passed at a general meeting. Then, within a specified period of days of passing the resolution, required documents and forms must be submitted to ASIC.
The process of change in share capital structure is time sensitive. In case of public companies the scale increases manifold. A change can be brought by:
Change in number of shares
Change in class of shares
All these require initiating corporate actions for the public company. At this point, multiple parties come in picture. Like, investors, regulatory bodies, data vendors, brokers etc. Once the event is processed, changes must be reflected into the books of accounts. These are well-thought business decisions and smooth execution is must for its success. You need a team of people, who can work tirelessly, right from creation to settlement of the corporate event.
Crown biz has specialists who have steered many such corporate events in the Australian market successfully. Connect with our team today to know more on how we can help you.