Share Structure
A Share Structure shows how ownership in a company is divided. It outlines the classes of shares, voting rights, profit entitlements, and control within the business. Lenders use this information to identify Beneficial Owners, confirm signing authority, and understand who must provide guarantees for Business Loans and Working Capital Loans.
Share structures are recorded on ASIC and usually supported by the Company Constitution.
Why Share Structure Matters in Lending
Ownership determines control — and lenders must verify who ultimately runs the company. Share structures are used to:
- identify individuals with 25%+ ownership
- determine who must sign as guarantors
- assess voting power and control
- reveal complex structures involving trusts or holding companies
- validate information against ACN and corporate filings
This ensures transparency around who ultimately benefits from loans or financial arrangements.
How Share Structures Work
- Shares may be issued in different classes (e.g., ordinary, preference)
- Each class carries specific voting and dividend rights
- ASIC registers legal owners, but lenders also check beneficial owners
- Changes require director resolutions and ASIC updates
- Share structures influence tax treatment and distribution of profits
Official source: asic.gov.au