Return of Capital

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Details

The return of capital is when some of the consideration the shareholder was previously given is paid back to them.

Example: Homer Simpson was allotted 2 $4 ordinary fully paid shares (total value $8). After the return of capital, Homer was returned $4. Homer now holds 2 $2 ordinary fully paid shares.

Navigation

From the Main Toolbar, go to Company.

Select the Company from the list.

Select Shareholders

Click 

Select Return of Capital

Instructions

CAS 360 will display the Return of Capital screen.

 Field
Explanation 
Transaction Date
Input the date of the Return of Capital
Shareholder

In the shareholder field, CAS 360 will display a list of the company's current shareholders

Beneficial Owner CAS 360 will automatically prefill this field if there is a beneficial owner.
Share Type

In the Share type field, CAS 360 will display a list of the share types the shareholder holds

Number of shares
Input the relevant number of shares affected
Capital Returned Per Share
Amount returned to the shareholder per share held. Cannot be an amount more than the value paid on the shares.
Capital reduction type
See section below for more information
Meeting Status
Select the meeting status of the member which will appear on the Resolutions.
Notes Type to add extra notes to appear on the Register of Members
                                                      2. Certificate Details - Transferor   
          Field                                       Explanation
Certificate Type  Select the Certificate type. Options range from Balance or None. 
Certificate Number  Type the Certificate Number for the Shares, This will feature on the Allotment Journal, Share Certificate, Notice of Beneficial Ownership (if applicable) and the Declaration of Trust. 
Certificate Location Type the location of the Certificate. 
Unique Numbers Type a Unique Number to assign to the shares. 
                                                      Certificate Details - Transferee    
          Field                                       Explanation
Certificate Type  Select the Certificate type. Options range from Transaction, Balance or None. 
Certificate Number  Type the Certificate Number for the Shares, This will feature on the Allotment Journal, Share Certificate, Notice of Beneficial Ownership (if applicable) and the Declaration of Trust. 
Certificate Location Type the location of the Certificate. 
Unique Numbers Type a Unique Number to assign to the shares. 

Click 

Capital Reduction Type

Single shareholder company or Multiple shareholder company.

If selecting Multiple shareholder company, a Form 2560 must be lodged before a capital reduction takes place

Note: Form 2560, cannot be lodged electronically and must be lodged on paper.

Forms Prepared

CAS 360 will display the Document Production screen and automatically select the documents required:

  • Cover Letter
  • Company Change Summary
  • Register of Members
  • Allotment Journal
  • Directors Minutes or Resolution
  • Notice of Members Meeting
  • Members Minute of Resolution
  • Member Consent
  • Share Certificate

Equal Reduction vs Selective Reduction

CAS 360 will automatically select between Equal or Selective reduction on the Companies Office form.

An equal reduction will be selected when the following conditions are met:

  • It relates only to ordinary shares.
  • It applies to each holder of ordinary shares in proportion to the number of ordinary shares they hold.
  • The terms of the reduction are the same for each holder of ordinary shares.

If not all conditions are met, CAS 360 will specify the transaction as a Selective reduction.

 

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