Details
A share redemption is when the par value is paid back to the purchaser of the shares.
Par Value is the apparent worth or face value of the share.
The total value and amount of shares will be reduced.
Redemption vs Share Buybacks
When a company issues shares and later decides to buy some of those shares back, this is considered a share buyback rather than a redemption.
When a company specifies that it will redeem or buyback shares when the shares are issued, this is considered a Redemption. Generally, a specific date is specified as to when the shares will be redeemed when the shares are issued.
The major difference between the two is that the shares bought back in a redemption are considered a security that is expected to be bought back by the issuer.
Example: John Brown was allotted 100 Redeemable Preference shares on the terms that the company will redeem the shares from John in 3 months. After 3 months the company redeems the shares from shares from John. The Forms for the redemption will need to be prepared and lodged to ASIC to indicate that the Company has taken back the shares from John.
Navigation
| From the Main Toolbar, go to Company. |
|
| Select the Company from the list. |
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| Select Shareholders |  |
Click 
Select Redemptions
Instructions
CAS 360 will display the Redemptions screen.
|
Field
|
Explanation
|
|---|---|
|
Transaction Date
|
Input the date of the redemption |
| 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 |
|
Redemption Amount Per Share
|
Input the amount the person will receive from the company for the each share redeemed |
|
Redemption Type
|
Select the type of Redemption. Either Redeemed from company profits or Redeemed from shares issue proceeds |
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Certificate Type
|
Leave as is Note: CAS will determine the most appropriate type of certificate for the current share transaction. If the person is transferring or redeeming their shares, CAS will determine that NO share certificate is required. If the person is transferring or redeeming some of their shares, CAS will determine that a BALANCE share certificate is required. Otherwise, CAS will select a TRANSACTION share certificate. |
|
Meeting Status
|
Select the meeting status of the member which will appear on the Resolutions. |
| Notes | Click  to add extra notes to appear on the Register of Members |
Click 
Forms Prepared
CAS 360 will display the Document Production screen and automatically select the documents required:
- Registers – Members
- Directors Meeting Minute or Resolution
- ASIC Form - Change to Company Details Form 484 Section C
- Allotment Journal (optional)
- Share Certificates
- Members Meeting Minute
- Members Consent
CAS 360 allows you to prepare documents and then notify ASIC through electronic lodgement via the Documents Screen. For more information on how to do so, click here.