Trading Shares in Molonglo Financial Services Limited
Calwell Community Bank® Branch is operated by Molonglo Financial Services Limited. Molonglo 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)
Molonglo 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. Molonglo 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.
Shares in Molonglo 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 Molonglo Financial Services Limited can be prohibited from acquiring shares in the Company.
Share transfers which result in the number of shareholders in Molonglo Financial Services Limited falling below a fixed ‘Base Number’ will be prohibited.
These restrictions are intended to embed the community nature of Molonglo Financial Services Limited.
Directors of Molonglo 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:
Bendigo and Adelaide Bank Limited, ABN 11 068 049 178 AFSL / Australian Credit Licence 237879. Any advice provided on this website is of a general nature only and does not take into account your personal needs, objectives and financial circumstances. You should consider whether it is appropriate for your situation. Please read the applicable Disclosure Documents before acquiring any product described on this website. Please also review our Financial Services Guide (FSG) before accessing information on this website. Information on this page can change without notice to you.