After registration of a new company, ASIC usually requires the company to keep a record of all the shares that have been issued i.e. the Register or the Share Register. The Share Register should contain the number of shares and shareholders which the company has. Note that the Share Register should contain the basic information of each shareholder which includes:
If a shareholder has shares which are Beneficially Held, this should also be indicated on the Share Register. Beneficially Held shares mean that the shareholder directly profits from them e.g. benefits derived from dividend payments. Non-Beneficially Held shares belong to a nominee, trustee or it is in another person’s account and the shareholder usually holds the share for someone else’s benefit. In case the shareholder is an executor or trustee, it should be indicated that the shares are not being Beneficially Held although this rule isn’t applicable to listed companies.
Changes on the Share Register
In case there are any changes regarding the shareholder’s personal information or their shares, all the changes must be recorded in the Share Register. This Register should have all the share information inclusive of:
If a company decides to issue shares, cancel shares or make changes in the share structure, ASIC needs to be informed within 28 days about the new share allotment or changes. The company should lodge a Change to Company Details by using Form 484 which contains the following queries:
Note that a company can decide to issue different share classes and what can be used to set apart different classes is the rights and restrictions which have been attached to each share class. Companies are allowed to use standard class titles like A class shares, B Class shares, Ordinary Shares or they can opt to use their own customized titles for every class of shares.Related Tags: Register a New Company | Setting up a Company