Question
If I have selected 'Create separate Certificates for newly received shares' why has one of the share certificates consolidated?
Answer
If a shareholder (the transferor) loses shares during a transfer, regardless of which Share Certificate Consolidation option is selected the certificate that will be generated will be consolidated.
Scenario 1: If a shareholder has 50 shares with two allotments 10 ORD and 40 ORD, 5 ORD are transferred out of the 10 ORD leaving 5 ORD and 40 ORD then a cert showing 45 ORD will generate not two showing 5 ORD and 40 ORD.
|
HOLDER |
CLASS |
QUANTITY |
PAID |
UNPAID |
|
Person One |
ORD |
50 |
$50.00 |
$0.00 |
|
10 |
$10.00 |
$0.00 |
||
|
40 |
$40.00 |
$0.00 |
Scenario 2: If a shareholder has two shareholdings equaling 50 ORD shares. One 10 ORD and the other 40 ORD, 5 ORD are transferred out of the 10 ORD leaving 5 ORD and 40 ORD then a cert showing 5 ORD will generate not two showing 45 ORD. This is because ASIC have the record showing 2 separate shareholdings.
|
HOLDER |
CLASS |
QUANTITY |
PAID |
UNPAID |
|
Person One |
ORD |
40 |
$40.00 |
$0.00 |
|
Person One |
ORD |
10 |
$10.00 |
$0.00 |
Only the transferee receiving new shares would receive the correct newly created Share Certificate/s if the 'Create separate Certificates for newly received shares' was selected.