Reconstruction of shares

[tarah]

Hi all,

Can anyone tell me what a reconstruction of shares is? I have received a statement from my friend's deceased estate I was executor for that must have been missed by the solicitor (settled in 2008). There was 20000 units and now after the company reconstructed in Jan 2010 there is 138 the company has told me. It is NuCoal Resources NL. As the cost to sell would be about $20 I have been told to just transfer into my name. The shares are only worth $0.18 and 138 of them now ha ha!

Thanks

 

[Amadio]

It just means that the company exchanged the numbers of shares their shareholders own for new ones. Somewhere you will find some statements saying, for example, for every 20 shares at 1c we are going to exchange that for 5 new ones at 4c. So you don't lose any money.

 

[tarah]

Thanks Amadio. Now I understand!