Sale of Shares

Introduction

This guideline details the process for the sale of shares to either a supernumerary or non-member pilot from an existing shareholder.

General Procedure

  1. The seller will initially contact either the Chairman or the Secretary to determine if there are any prospective buyers on awaiting list and also the last share sale price.
  2. In the event of an active waiting list, the seller will be provided with the email addresses of the available buyers.
  3. In the event of no buyers on a waiting list,
    • Sellers can register their intent to sell their shares with the Secretary.
    • Buyers contacting the Chairman or Secretary will be provided with the email address of any shareholders prepared to sell their shares
  4. The Secretary emails details of the sale procedure to the seller.
  5. Prospective buyers can contact the Chairman or the Secretary to determine if there is a waiting list for shares or sellers with shares available.

    In the absence of a waiting list,the seller may market their shares in any way felt appropriate (e.g. by advertising in aviation magazines.)

If the buyer is not currently flying with MAG as a supernumerary, the procedure is as follows:

  1. On successful negotiations with a buyer, the seller advises the Secretary of the name, postal address, and email address of the proposed buyer (“the buyer”) and also the agreed share sale price.
  2. The Secretary sends an email to the buyer giving details of the sale procedure and attaching the following:
    • Share Transfer Form.
    • Service Agreement.
    • New Member Entry Form.
    • Engineering Papers.
    • Previous year’s financial report.

      The email will request the buyer to:
      – read the Service Agreement.
      – complete the relevant Engineering Paper.
      – complete the buyer details on the Share Transfer Form.
      – complete parts A, B and C of the New Member Entry Form.
  3. The Secretary provides the seller with a reconciliation statement of any money owing or flying credits held (obtained from the Finance Director)
  4. The buyer then is to arrange a familiarisation flight with a nominated Flight Instructor (in accordance with Part 6.5 of the Service Agreement).

    (Note that the nominated flight instructor can be a suitably qualified Director or MAG member).

    The buyer must hand the completed Engineering Paper for the nominated aircraft to the Instructor prior to the flight and send a copy (hard or digital) to the Secretary.
  5. If the familiarisation flight has been successful, the nominated Flight Instructor will sign part D of the New Member Entry Form and the buyer will forward the form to the Secretary.
  6. If the familiarisation flight is not completed satisfactorily, then the transfer will not be approved at this time.

    A remedial program may be agreed between the buyer and the nominated Flight Instructor. In the event of a remedial program, a second familiarisation flight shall be conducted with the same Flight Instructor.
  7. The buyer is then to complete the transaction with the seller and forward the following to the Secretary:
    1. The fully completed transfer form (signed by the seller) signifying that the transaction has been completed.
    2. The completed New Member Entry Form.
  8. The seller will be asked to complete the transaction after the buyer has successfully completed the familiarisation flight as certified by the nominated Flight Instructor’s signature on the New Member Entry Form.
  9. To complete the transaction, the seller must give the locker key and the completed Share Transfer Form to the buyer and settle any moneys owing with the MAG Finance Director.
  10. The buyer will be invoiced the joining fee of $150.00, the cost of the check flight and any pro rata annual levy (in 2020/21 $660).
  11. When the completed Share Transfer Form and the New Member Entry Form are received by the Secretary and the required funds from the buyer and the seller as may be appropriate received by the Finance Director, the buyer will then be advised that they are now officially a shareholder and are authorised to fly MAG aircraft. Access to the web site Aircraft Booking page will be arranged with the Secretary. The Share Transfer Form will be stamped with the MAG seal and a copy sent to the new shareholder. The ASIC share register will be amended by the Secretary.

If the buyer is a supernumerary, then the procedure is as follows:

  1. The Secretary sends a letter to the supernumerary giving details of the sale procedure together with a Share Transfer Form.

    The buyer will be requested to:
    • Complete the transferee details on the Share Transfer Form(including the signature).
    • Pay any balance of the share price (over and above the deposit previously lodged with MAG) directly to the seller.
    • Give the Share Transfer Form to the seller to complete.
  2. The Secretary sends an email to the seller providing a reconciliation statement (obtained from the Finance Director) requesting the seller to complete the seller details on the Share Transfer Form received from the buyer.
  3. The seller will be requested to return the signed Share Transfer Form to the Secretary and hand the locker key to the buyer.
  4. On receipt of the completed Share Transfer Form, the Secretary shall advise the Finance Director so that the supernumerary deposit can be paid to the seller.
  5. The Secretary also sends a letter to the buyer indicating that the Share Transfer Form has been received and welcoming them as a shareholder. The Share Transfer Form will be stamped with the MAG sale and a copy sent to the buyer. The ASIC share register will be amended by the Secretary.