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  • #979132
    Buddy123
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    Hi,

    I have a pty ltd company and would like to know if i want to issue more shares to myself so i can put more money in the company do i need to contact asic and fill in forms?

    #1112195
    yourvirtualboard
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    Putting money into your Company, you are able to do this by crediting your loan account. No need to issue shares or get ASIC involved.

    #1112196
    ntgd
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    Hi,

    You can loan money to your company withour issuing shares.
    However if you just put money into the company, you will be an unsecured creditor.

    To better protect yourself made yourself a secured creditor by putting a charge on the company when you loan the money to the company.

    Think of it as you personally now acting as the bank for the company.

    #1112197
    James Millar
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    I tend to agree with Harry – all else the same the simpler the better BUT it does depend on your objectives and balance sheet requirements.

    The problem with booking it as debt (a loan) is that it doesn’t help your net asset position. Effectively this means minor trading losses can create negative net assets which is technical insolvency.

    Under the new PPSA, fixed or floating charges no longer exist as such. Taking general security is not what it use to be.

    But in direct answer to your question – yes a form 484 must be lodged with ASIC if new shares issued.

    Helping build better businesses and better lives with expert financial and taxation advice. [email protected] www.360partners.com.au 03 9005 4900
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