For more information, please refer to the instructions below :
A unit subdivision is where an existing unit class is subdivided into two or more new units. In most cases it will not change the unitholder’s rights as they stood pre-subdivision. A subdivision may occur to increase the liquidity if the unit capital for future investors or the sale of existing units.
It is important to review the trust deed of the trust and any existing unitholder agreements so as to make sure that any specific provisions are adhered to.
To start this process, you will need to click on ‘Subdivision of Units’ under the 'Unitholders' heading.
You will then be redirected to the relevant webform, to which the form will be pre-filled with the relevant data that has currently been added or imported into the Trust profile. You will need to complete any data that has not been pre-filled. The data fields are highlighted in pink.
You cannot submit the webform until all relevant data fields are completed.
When you get to the subdivision webform page, you will prompted to respond to the following:
- Relevant clause in the Trust Deed that allows for subdivision of units to occur.
- Class (type) Subdivision. This requires a yes/no option in relation to the subdivision of the class of units issued. If there is more than one type of unit class in the trust, a list will appear. You can choose which units the subdivision 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 300 and you wish to subdivide by 2, then the new total number of units in the class will be 600.
- 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 unitholding across the unitholders pre/post subdivision.
You can choose to ‘save and complete later’ if you need to verify the information. Alternately, you can move through to ‘submitting’ the information in the webform to complete the relevant documentation.
After submitting the details, the relevant documentation will appear on the ‘collaboration page’ ie:
- Subdivision 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 ‘Subdivision 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 the changing of 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, as required.
The Units Register will be updated to reflect the:
- Subdivision of units on the relevant Unit Classes for each unitholder. 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.