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How to deal with suspended or delisted stocks when winding up your SMSF?
17 Oct, 2019
When winding up your SMSF, if the stock you invested in has been suspended and there are no guidelines for reinstatement, you should follow the guidelines below:
– If it has been suspended for a long time, the SMSF may dispose of it through an off-market transfer to any party.
– The trustees should review likelihood of the stock ever being listed again.
– For the valuation of the stock, the administration or liquidators can confirm the value, and the trustees can dispose of the stock at that value.
– If the company is under liquidation and the liquidator’s update provides no hope of paying distributions to shareholders, SMSF trustees can sell the entire holding for $1.