Trading Shares in City West Community Financial Services Limited
Darling Square Community Bank Branch of Bendigo Bank is operated by City West Community Financial Services Limited. City West Community Financial Services Limited also operates a Special Market called a Low Volume Market (LVM), to facilitate the trading of its shares. The conditions of this market are set out below.
Special Market Condition Notices – Low Volume Market (LVM)
- City West Community Financial Services Limited does not hold a license to operate a financial market and is not subject to market obligations, in particular the obligation to ensure that the market is fair, transparent and orderly. The market is covered by an exemption under section 791C of the Corporations Act. City West Community Financial Services Limited does not provide a settlement service for trading in the market – it is the responsibility of the parties to a transaction to arrange payment between themselves.Click on the following link to download a copy of the exemption notice in pdf format from the ASIC website.
- Shares in City West Community Financial Services Limited have characteristics that may differ from mainstream securities.
Special characteristics of Community Bank® companies
- ‘One shareholder one vote’ constitutions rather than ‘one share one vote’.
- Shareholder limit of 10% of issued capital for individuals and related entities.
- There is a limit on profits that can be distributed to shareholders, including through dividends. By way of overview, the limit is the higher of: (a) 20% of the profits of the Company otherwise available for distribution to shareholders in the financial year, and (b) the relevant rate of return (being the weighted average interest rate on 90 day bank bills over the 12 month period plus 5%) multiplied by the average level of share capital over the 12 month period.
- Persons who do not possess a “close connection” with the community served by City West Community Financial Services Limited can be prohibited from acquiring shares in the Company.
- Share transfers which result in the number of shareholders in City West Community Financial Services Limited falling below a fixed “Base Number” will be prohibited.These restrictions are intended to embed the community nature of City West Community Financial Services Limited.
- Directors of City West Community Financial Services Limited have the right to refuse to register any transfer of shares in their unlimited discretion.
- Full details of the restrictions on holding shares and Directors’ powers to refuse to register a transfer of shares are set out in the Company’s constitution. A copy of the constitution is available on request from the Company Secretary:
City West Community Financial Services Limited
P.O. Box K405 HAYMARKET NSW 2000
- Prudent share purchasers will consider whether they should insist on Board approval of the share transfer as a condition precedent to their obligation to pay purchase money.
- Stamp duty may apply in your State/Territory. Please refer to the State Revenue Office in your State for details