199 Determining number of shareholders

(1)

For the purposes of this subpart and section 208, the number of shareholders that a company has, in relation to an accounting period, is the number of shareholders that hold voting shares as at the close of the first day of the period.

(2)

Joint holders of a parcel of shares must be counted as a single shareholder.

Example

ABC Limited has an accounting period of 1 April 2014 to 31 March 2015. ABC Limited is not large (see section 45 of the Financial Reporting Act 2013).

At the close of 1 April 2014, 16 shareholders hold ordinary voting shares. (The company also has 12 shareholders who hold non-voting preference shares, but non-voting shares are not relevant to the calculation under this section).

Two of those shareholders hold their parcel of ordinary voting shares jointly. These shareholders are counted as a single shareholder.

For the purposes of this subpart and section 208, ABC Limited has 15 shareholders in relation to the 1 April 2014 to 31 March 2015 period. This means that it must prepare financial statements, have those statements audited, and prepare an annual report unless it opts out of compliance under section 207I.

Section 199: replaced, on 1 April 2014, by section 30 of the Financial Reporting (Amendments to Other Enactments) Act 2013 (2013 No 102).