S E C T I O N 1 2 : Our Financial Review
ALLIANCE ANNUAL REP ORT 2018
C. MANAGING FUNDING IN THIS SECTION This section explains how Alliance Group manages its capital structure and working capital along with the various funding sources. C1
C APITAL MANAGEMENT Alliance Group’s capital includes share capital, reserves and retained earnings. The Board’s objective when managing capital is to maintain a strong capital base to ensure Alliance are able to undertake future growth opportunities and maximise the return to shareholders. The board considers a strong capital base is necessary to protect the company from volatility and changes in capital and operating market conditions. The board monitors forecast capital inflows and outflows, and the level of shareholding relative to shareholders’ supply to ensure that the company retains a strong capital base, with a key reference point being the shareholders equity ratio.
Total equity Total assets
SHARE C APITAL Group
As at 30 September 2018 there was a share issue pending of 386,000 shares. All shares have equal voting rights and shareholders are entitled to one vote per share. The maximum shareholding is 1.35 million shares. Upon winding up, shares rank equally with regard to the company’s residual assets. Shares are issued and surrendered at their nominal value under the company’s constitution and the Co-operative Companies Act 1996. Co-operative shares may be surrendered where shareholders have not transacted with the company for five years or do not have the capacity to be a transacting shareholder.