Issue
When processing a Form 484 for a Share Buy-Back, Section C4 shows the number of shares decreasing by the buy-back amount (e.g. 3,006 shares), but then shows the same number of shares as still remaining/held by the shareholder or member. This is incorrect – a full buy-back of all shares of that class should leave 0 shares remaining, not the original number.
Cause
Section C4 reports the register of members as at the Form 484’s document date – not the Buy Back’s Transaction Date. If the Form 484’s document date is earlier than the Transaction Date of the Buy Back, the buy-back has not yet taken effect as at that document date. This causes Section C4 to show the shares being bought back as a decrease, while still counting them in the shareholder’s remaining holding.
This most commonly happens when a Buy Back transaction is toggled on in the Shareholders screen and documents are prepared using the default document date (today’s date), while the Buy Back’s Transaction Date is set for a future date.
Resolution
- Go to the Documents screen and delete any previously prepared Form 484 for this change.
- Return to the Shareholders screen, with the Buy Back transaction toggled on, and re-prepare the documents.
- Before generating the Form 484, set its document date to the same date as, or a date after, the Buy Back’s Transaction Date.
- Section C4 will now correctly reflect the shareholder’s holding after the buy-back (the shares removed, no longer counted as held).