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PCSR - Statement of Capital Allocation warning regarding negative Reorganisation

Article ID
kba-03717
Article Name
PCSR - Statement of Capital Allocation warning regarding negative Reorganisation
Created Date
11th March 2020
Product
Problem
When generating a CS01 for a company, a Statement of Capital Allocation warning appears regarding a negative share reorganisation for a particular member:
Resolution

The software goes through the share transaction history to find the original allocation with the same paid/unpaid per share value.  Even though multiple transfers may have taken place between different members at different values, it is the original paid/unpaid per share the software is looking to match.  A note to this effect (see below) displays in the share transaction record for the negative reorganisation.  Leaving the Payable per share blank will also resolve this warning.

REORGANISATION (negative entry):
Enter details of the amount payable/paid to the company on original shares, including share premium – NB: For the purposes of the Annual Return Statement of Capital, if amounts payable/paid are left blank, then this negative Reorganisation will be matched against prior entries for this member on a ‘first in, first out’ basis; otherwise, this negative Reorganisation will be matched against prior entries for this member with the same amounts payable/paid.

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