Company share and shareholder rules and changes
Key points:
- Details about proprietary company shares and shareholders are kept on the companies register.
- Companies must keep their own registers of members as well.
- There are rules about the way companies can make changes to their share structure.
- Companies must tell us about any changes that affect their company’s share structure.
- Proprietary companies must also tell us about any changes to their company’s shareholder details.
Company shares and shareholders
Details about proprietary company shares and members (shareholders) are kept on ASIC's companies register. They must also be kept on the company’s own share register.
Proprietary companies must give us details of shares and members when they apply for registration. They must then tell us about any changes.
See more about shares, shareholder and register requirements.
Changes to the share structure
Companies must tell us about any changes that affect the share structure. This includes:
- share issues
- cancelled shares
- buying back shares
- reduced share capital.
Companies must also tell us about any changes to the share classes.
Share issues
A share issue is when a company creates and allocates shares. The company can decide the rules for its shares. For example: how much they cost, what benefits come with them and any limits on those benefits. This may happen when the company is first set up or after it is registered.
See the rules about how companies can issue shares and what they must tell ASIC:
Cancelled shares
Companies may decide to cancel shares for several reasons. This results in a reduction in share capital.
See the rules about how companies can cancel shares and what they must tell ASIC:
Share buy-backs
A share buy-back is when a company buys back the shares they have issued to existing shareholders. There are different types of share buy-backs.
See the rules about how companies can buy back shares and what they must tell ASIC:
Reduction in share capital
A reduction in share capital is when a company returns the money shareholders paid for their shares to the shareholders.
See the rules about how companies can reduce share capital and what they must tell ASIC:
Reduction in company share capital
Member details
People who hold shares are often called ‘shareholders’ or company ‘members’.
Public companies do not have to tell us about changes to member details.
Proprietary companies must tell us about any change to member details and shares. Companies with more than 20 members, only need to tell us about changes that affect the top 20 members in each class of share.