When your clients are evolving, so should their shareholding. As their accountant, you’re more than the numbers person- you’re often the first port of call when something big is about to change. Whether they’re bringing in a new investor, rewarding a top employee with equity, or planning for a business partner’s exit, changing a company’s share structure is a moment that matters.
Handled well, it’s a strategic move that unlocks growth, simplifies operations, and increases the value of your service offering. Done poorly, it creates confusion, risk, and a whole lot of backtracking.
Let’s walk through the why, the how, and how you can handle these transitions with ease and confidence.
First, what is a share structure?
A company’s share structure defines who owns what, and with what rights. It includes:
- The total number of shares on issue
- The types of shares (e.g., ordinary, preference, non-voting)
- Ownership percentages
- Rights to vote, receive dividends, or participate in decision-making
This structure shapes not only governance and cash flow, but also future planning, succession, and investment decisions. As the business evolves, so must the share structure.
Why businesses change their shareholding
If you’re a professional advising small and mid-sized businesses, you’ve likely come across a few of these scenarios already:
1. Bringing in capital or new investors
If a business is raising funds, whether via angel investors, venture capital, or a strategic partner, they’ll likely issue new shares. This introduces dilution and sometimes new share classes with distinct rights.
2. Rewarding staff with equity
More businesses are turning to employee share schemes or incentive plans. Equity can help retain top talent, but it also requires precise structuring and documentation.
3. Managing an exit or buyout
When a founding director wants to exit, transferring shares to other owners or buying them back must be handled legally and with clear tax implications.
4. Succession planning
In family-owned or multi-generational businesses, transitioning ownership to the next generation is sensitive and strategic. Structuring this well avoids disputes down the line.
5. Preparing for sale, merger or acquisition
If a business wants to sell the business or merge, they may need to simplify or consolidate their shareholding to make it more attractive and manageable for buyers.
Methods of changing the share structure
There are two primary ways companies change their shareholding:
1. Issuing new shares
This increases the total number of shares and changes each shareholder’s percentage ownership. You’ll often see this with investment rounds or when launching an ESOP.
2. Transferring existing shares
This involves the sale or transfer of shares from one party to another. It’s often used for exits, internal restructures, or family planning.
Both methods require:
- Board approval
- ASIC notification
- Updates to the company register
- Compliance with the Corporations Act 2001 (Cth)
- Review of constitutions or shareholder agreements
This is where a business’s accounting advisory team becomes essential, not just for tax or valuation advice, but for ensuring it’s done correctly.
Your opportunity: Add value, not admin
For many accounting firms, managing share structure changes feels like a legal admin headache. But with the right tools, it’s an opportunity to:
- Offer new billable services
- Deepen client trust by guiding big decisions
- Increase long-term retention by being their go-to advisor
- Differentiate your firm with compliance-backed solutions
And you don’t need to do it manually.
With Prime Compliance, you can help clients manage share changes efficiently and professionally. Our platform enables accounting firms to:
- Generate compliant documents for share issues or transfers
- Lodge ASIC forms directly from the platform
- Update and maintain live company registers
- Offer a white-label client experience under your firm’s brand
- Reduce manual admin and human error
We provide the infrastructure. You remain the trusted advisor.
Final thoughts: It’s about trust and timing
Changing a share structure isn’t an everyday event. But when it happens, businesses needs fast, accurate, and calm advice. This is your moment to shine, not just as the numbers expert, but as the advisor who helps them grow, protect, and transition their business confidently.
With Prime Compliance, you can offer that service, efficiently, compliantly, and profitably. We’ll show you how easy it is to deliver share structure services at scale—without scaling your admin burden. Learn more about outsourcing your compliance needs with Prime Compliance or contact Prime to explore how our managed services can elevate your accounting practice.
Total Compliance. No one does it better.