Cancellation of Shares

I’m not sure what the legalities are, but it seems wrong to me that a member’s shares could be cancelled (forfeited) without them signing some kind of acknowledgement/consent.

CAS360 does not provide this kind of document so I always draft one myself. Maybe it’s not required but it seems like best practice to me, particularly if the business owners are unrelated.

I’m interested to hear others’ thoughts about this. Is it a document that should be included in CAS360?

thanks!

Further to this comment, funnily enough, today I have been made aware of an issue where a share cancellation has been lodged with ASIC and now the shareholder is complaining that they never consented to the cancellation! So I’m going to send this to BGL via feedback.

Hi @Anne.Wright

Thank you for the feedback

We have checked the practice guides that we follow for our documentation, and there is no document for member’s consent for share cancellations.

However, I have added this to the development list, so that we can add this, and allow users to turn this option on when preparing a cancellation document pack.

Kind Regards,

Warren