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 Add Transaction +
Select Return of Capital
Instructions
CAS 360 will display the Return of Capital screen.
1. Share Details
| Field | Explanation |
|---|---|
| Transaction Date | Enter the date of the return of capital. |
| Shareholder | Select the shareholder. CAS 360 lists the company's current shareholders. |
| Beneficial Owner | CAS 360 automatically fills in this field if there is a beneficial owner. |
| Share Type | Select the share type. CAS 360 lists the share types the shareholder holds. |
| Number of shares | Enter the number of shares affected. |
| Capital Returned Per Share | Enter the amount returned to the shareholder per share held. This can't be more than the amount paid on the shares. |
| Capital reduction type | Select Single shareholder company or Multiple shareholder company. |
| Meeting Status | Select the shareholder's meeting status. This appears on the resolutions. |
| Notes | Enter any extra notes to show on the Register of Shareholders. |
2. Certificate Details
Enter the certificate details for the Transferor and the Transferee.
Transferor
| Field | Explanation |
|---|---|
| Certificate Type | Select the certificate type. Options are Balance or None. |
| Certificate Number | Enter the certificate number for the shares. This appears on the Share Certificate. |
| Certificate Location | Enter the location of the certificate. |
| Unique Numbers | Enter a unique number to assign to the shares. |
Transferee
| Field | Explanation |
|---|---|
| Certificate Type | Select the certificate type. Options are Transaction, Balance or None. |
| Certificate Number | Enter the certificate number for the shares. This appears on the Share Certificate. |
| Certificate Location | Enter the location of the certificate. |
| Unique Numbers | Enter a unique number to assign to the shares. |
Click Save
Forms Prepared
CAS 360 will display the Document Production screen and automatically select the documents required:
- Cover Letter
- Company Change Summary
- Register of Shareholders
- Issued Journal
- Directors Minutes or Resolution
- Notice of Shareholders Meeting
- Shareholders Minutes or Resolution
- Shareholders Consent
- Share Certificate
- Extensive Shareholding List
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.