For more information, please refer to the instructions below:
Trustees of a Unit Trust may decide to consolidate units so that the number of units on issue are reduced but the nominal or market value of each unit is increased. A consolidation is based on a conversion ratio of i.e. 100 to 1. As an example, a Unit Trust with a unit issue of 1,000,000 units at $1 each would then consolidate to 10,000 units at $100 each. A consolidation will not change the unit holder’s rights but merely changes the number of units and nominal value per unit.
It is important to review the Trust Deed of the Trust and any existing unit holder agreements to ensure any specific provisions are adhered to.
To start this process, you will need to click on ‘Consolidation of Units’ under the 'Unitholders' heading.
You will then be redirected to the relevant webform, where pre-filled data has been added or imported into the Trust profile. You will need to complete any data that has not been pre-filled. These data fields will be highlighted in pink. You cannot submit the webform until all relevant data fields have been completed.
When you get to the subdivision webform page, you will be asked the following questions:
- Relevant clause in the Trust Deed that allows for consolidation of units to occur.
- Class (type) consolidation. This is a yes/no option for the consolidation of the class of units issued. If there was more than one type of unit class in the Trust, a list will appear and you can choose what units the consolidation applies to.
- New total of number of Class (type of class). Enter the number of total new units in the class. ie: if the initial total number of units in the specific class chosen was 600 and you wish to consolidate to 0.5 for each unit, then the new total number of units in the class will be 300.
- Unit Certificates: Enter the existing and then the new unit certificates in relation to the class of units that is to be subdivided.
An estimate screen will then appear outlining the updated position of the unit holding across the unitholders pre/post consolidation.
You can then either ‘save and complete later’ if you are needing to verify the information or alternatively you can move through to ‘submitting’ the information in the webform and complete the documentation.
After submitting the details, the relevant documentation will appear on the ‘collaboration page’ i.e:
- Consolidation of Units. This document will include the following:
- Minutes of Meeting of Unitholders and Trustee.
- New Certificate(s).
- Cancellation of initial Unit Certificate(s).
Once the ‘Consolidation of Units’ documents have been signed by the client, you will need to either change the status on the collaboration page (‘Paper signing’ option) or on the Trust Profile (Mark as Signed’ options).
On changing the status to 'signed', the following areas of the Trust Profile will then reflect the change of Unitholders and issue of units:
Timeline is a visual representation of the documentations produced on the Trust Register of the Trust or that have been manually uploaded. It is displayed by date order. By clicking on any of the PDF documents you are able to view, download or print if required.
The Units Register will be updated to reflect the:
- Consolidation of units on the relevant Unit Classes for each Unit Holder.
- Unitholders and details of the unit holdings.
- Unit transactions.
Main Trust Profile:
The main Trust profile will also be automatically updated to reflect the change in Unitholders and Unit Holdings.