According to the Companies Act of 2008 your Pty Company should keep a strict track record of share transfers. The statutory regulations required to track the shares are very rigid.
How does it all work?
1. Share Allocation (Included in your Company Registration)
Every company needs to initially make an amount of shares available to the current and future shareholders. This is done during the company registration process and shown on the MOI Certificate of a company. Normally the total Share Allocation amounts to 1000.
2. Share Certificates (Price: R450, Timeframe 48 hours)
Normally a company would issue about 100 of a 1000 shares to shareholder. This is called ‘Issued Shares’. Depending on the growth plans of a new company, it is wise to issue a limited amount of shares to the current shareholders / investors. This leaves space for future growth. For example, if the MOI allotted 1 000 shares, the Directors should authorise only a small percentage initially – say 100 shares (10% of the total). If the two shareholders each wants 50% stake holding, each will own 50 shares. This allows the company to take on new partners easily if required in the future. The Share Certificate is basically the legal document which acts as legal evidence that a specific person owns an amount of shares in a company. Read more here.
3. Transfer / Allotment Of Shares (Price: R550, Timeframe: 48 hours)
If a company wants to sell shares to a new shareholder, you would have to follow a legal process called a “Transfer of Shares”. If a company wants to take new shareholders / investors on board they need to process the “Allotment of Shares” which also constitutes a legal process. This process ensures the new owner that he / she legitimately owns a specific amount of shares in the applicable company, for example 250 of the 1000 authorized shares.
4. Authorised Shares (Our price: R890, Timeframe: From 48 hours up to 20 working days in case the MOI needs to be changed)
In case a company needs to have more authorised shares for new investors / partners after initiation, it can be increased by the process of increasing the “Authorised Shares”. For example, according to the Company’s MOI it can only authorise up to 1000 shares. If that amount is reached and the company wants to allot another 1000 shares, they need to increase the “Authorised Shares”.
How do I keep track of Shares?
1. Share Register Hardcover books (Price: R490 – postage included, Timeframe: 48 hours)
You need to keep track of all the changes by using a specific Share Register Hardcover book. This book is viewed as a legal document in court. Make sure you keep it up to date, or you can use our services for that as per below…
2. Share Register update (Price: R450 per hour, Timeframe: 48 hours)
Every company should have a professional (such as a lawyer, company secretary or compliance officer) update their Share Register to make sure in meets all legal standards. In case yours is behind or empty, we can assist as we have an in-house ‘Compliance Officer’.