Finding Lost Shares
Small Parcels of Shares: What Are Your Options?
Understand the choices for small share parcels, including holding, selling, transferring and donating shares to charity.
A small parcel may be worth too much to ignore but too little to justify repeated paperwork, brokerage and record keeping. This is common with dividend reinvestment plans, demutualisations, inherited portfolios and residual holdings left after a sale.
Option 1: Keep the shares
Keeping the parcel may make sense where you want ongoing exposure, dividends or voting rights. Remember to maintain current contact and bank details and retain records for tax purposes.
Option 2: Sell the shares
A sale converts the holding into cash but may involve brokerage, identity checks and capital gains tax consequences. Some brokers or issuers offer small shareholder sale facilities from time to time, but availability and terms vary.
Option 3: Transfer the shares
You may be able to transfer the parcel to a family member, another entity or your own broker account. Transfers require matching details and may create tax or legal consequences even where no cash changes hands.
Option 4: Donate the shares
A charitable share donation can avoid the need for the donor to sell the parcel first. Eligible shares are transferred through an off-market process for charitable purposes, subject to documentation and acceptance requirements.
Compare the real cost, not just the market value
Consider brokerage, administration time, registry requirements, tax records and whether you genuinely want to remain a shareholder. For some, donating can be the simplest meaningful outcome. For others, keeping or selling makes sense. Chat to your accountant or financial planner!
Ready to take the next step?
Have a parcel you would rather put to good use? Check whether it is eligible for donation through Donate Your Shares Australia.
General Information Disclaimer
This article contains general information only and does not constitute financial, legal or tax advice. Requirements vary between holdings, brokers, registries and personal circumstances. Consider obtaining advice from an appropriately qualified professional.