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May 01, 2024

Selling/Buying AVZ Shares While Suspended

in SMSF Technical Forum

Hi,

A client was enquiring as to wanting to sell his suspended AVZ shares from himself personally to his SMSFand can this be done?

My thoughts were yes in a legal sense but good luck determing a fair market price, so it may be impossible to comply with Section 109 in this scenario where a share is suspended. Simply using the last traded price seems a bit sketchy, what do you think?

His belief is the company may pay a return upon selling their mining license off however I also saw this week AVZ is now classed as delisted from the ASX or soon to be.

4 comments

Comments (4)

THE AUDITORS INSTITUTE

May 02, 2024

Hi CV

My view is that if a share is delisted it cannot be acquired from a related party.

Under section 66 of SIS can only acquire listed shares from a related party.

Listed security defined as:

"means a security listed for quotation in the official list of any of the following:

(a) a licensed market within the meaning of the Corporations Act 2001 ; or

(b) an approved stock exchange within the meaning of the Income Tax Assessment Act 1997 ; or

Thanks

The Auditors Institute

May 02, 2024

Replying to

Thanks, what about if it is just suspended from trading? For arguments sake and future reference.

ROBERT YOUNG

May 03, 2024

Replying to

The shares have been suspended since May 2022 . They are still listed ( as of last week ) but i think the ASX policy is to delist after 24 months suspension .

I have just issued a Part A qualification for a Fund on the basis that i was unable to be satisfied as to the market value used un the Fund's 2023 financial statements . ( they used the last traded price of 78c )

Good luck in arriving at a market price if the transaction is planned before delisting

May 03, 2024

Replying to

Thank you Robert, yes my auditor who is a very thorough operator recently did that and has also done so on another client with a large unsecured loan.