Shares can be redenominated or converted from one currency to another through an ordinary resolution. The resolution may also specify conditions which must be met before the redenomination takes effect.
To decide on the conversion rate, a company can do one of the following:
- Use the spot rate prevailing on a date specified in the resolution.
- Take the average exchange rate over a time period as specified in the resolution.
Redenomination may take place on the date that the resolution was passed or on a later date specified in the resolution. After the resolution has been passed, companies must file the “Notice of Redomination” transaction via BizFile+.
Redenomination of shares does not affect the rights or obligations of members under the company’s constitution. In particular, it does not affect the entitlement to dividends or voting rights.