from $330 (INCL GST)
The Corporations Act limits a company’s ability to reduce its share capital prior to the company being wound up. The main reason for this is to protect the interests of creditors who are faced with the principle of limited liability should the company become insolvent, but also acts to protect the interests of and ensure fairness between shareholders.
A company can reduce its issued share capital in a number of ways under the Corporations Act 2001 – The two most common methods are:
- A share capital reduction: either equal reduction or selective reduction
- A share buy-back
Other types of cancellations are:
- Redeemable Preference.
- Forfeited Shares
We can assist you with Cancellation of Shares issued in your company.
Depending on the type of cancellation, generally we provide the following:
- Preparation of appropriate ASIC forms
- Notice of meetings
- Members' resolution (as required)
- Directors' resolution (as required)
- Members register (as required)
- Allotment journal (as required)
- Share Certificates (optional extra)
How long does the Cancellation of Shares take?
Generally, between 4 to 12 weeks. This depends on the cancellation types and complexity. Patricia Holdings staff will contact you upon receipt of the order and advise an expected timeframe and prepare a quote for you.
How much does the Cancellation of Shares cost?
Starts from $300 to $900 +GST. This depends on the cancellation types and complexity. Patricia Holdings can provide you with an accurate, obligation free quote for your consideration.
- Capital Reduction (equal reduction): $600+GST, plus ASIC search fees
- Capital Reduction (selective reduction): $760+GST, plus ASIC search fees
- Share Buy-back: $900+GST, plus ASIC search fees
- Redeemable Preference: $300+GST, plus ASIC search fees
- Forfeited Shares: $300+GST, plus ASIC search fees
- Other Share Cancellations: from $300+GST, plus ASIC search fees
