Handling Share Prices and Transfers within Waive
When a company is initially registered with ASIC, the share price, class, and quantity are determined.
For instance, a company might issue 100 ordinary shares at $1.00 each. These shares can be either fully paid or partially paid.
For instance, a company might issue 100 ordinary shares at $1.00 each. These shares can be either fully paid or partially paid.
Fixed Value of Shares and ASIC Compliance:
The value of shares, as recorded with ASIC, is fixed.
For example, if ABC Company issues 12 ordinary shares at $1.00 each, the total value is $12.
When submitting the ASIC Form 484, this fixed value is recorded as part of the transactional data.
For example, if ABC Company issues 12 ordinary shares at $1.00 each, the total value is $12.
When submitting the ASIC Form 484, this fixed value is recorded as part of the transactional data.
Transferring Shares above the fixed value:
Suppose you want to transfer 6 of these shares to a new shareholder at a value higher than the fixed ASIC price—say $1,000 per share. This process involves two key steps:
1 - Submit Form 484 to ASIC: Complete the form to transfer the 6 shares at the original fixed price of $1 per share. This is a transactional update with ASIC, reflecting the share transfer.
2 - Create a Share Agreement: Draft a share agreement that specifies the new shareholder has acquired the 6 shares at a total value of $6,000 ($1,000 per share).
This agreement is an internal compliance document and must be signed by the directors.
Important Notes:
Waive's Limitations: Currently, Waive does not support the creation of share agreements. These agreements need to be created separately and cannot be generated within the Waive platform.
Share Agreement and ASIC: The share agreement is a separate document and is not submitted to ASIC. It simply records the terms of the share transfer for internal purposes. The transaction with ASIC remains at the original fixed price of the shares.