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Thread: Deed of Transfer / Share register / Register of Share Transfers and STT

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    Deed of Transfer / Share register / Register of Share Transfers and STT

    Hi All

    Is there anyone who can advise what the following mean and where I can find them?

    A pty has two shareholders with 50 shares each. It has not traded. One resigned and transferred their 50 shares to the other. For their peace of mind they both want to know that there is a legal record of the outgoing director transferring shares to the remaining shareholder.


    1. Deed of transfer
    2. Register of shares / Share register
    3. Register of share transfers
    4. Is there a threshold on STT? For sale of 50 shares (not yet traded) would they need to pay STT? (I think its 50 shares of R1 each)

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    Hello Connie

    1. The deed of transfer can be a very simple document. You can even use a CM42 (old Act) as an instrument of transfer. It must just say who is the seller, who is the purchaser, who is the company, how many shares, what type of shares and the proceeds.

    2. If the company is a new Act company, then there need not be share certificates, but there must be a register of shareholders and their holdings, and a register of transfers.

    3. As regards directors, although it is an entirely separate issue, you would expect the seller to resign in writing from the board, and resignation details submitted to CIPC.

    4. There is no threshold for STT. It is 0.25% of the proceeds. Personally I would ignore it (it is wrong, but for 12 cents ....)

    5. Be aware that the shares are Ordinary shares with no par value. That means their value is whatever is decided by the directors on issue, or on transfer.

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    Hi Clive

    This is so on-point - thanks for this advice - much appreciated!

    Regards
    Connie

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