Shares and MOI

[karl123]

I have registered my business with CIPC and all is well. My company is a PTY and has 2 directors. The company was registered with 100 shares. Now me and the other director have 50 shares each. How do we formalize this? Do we right a letter between us, is there some sort of document? Please help

[HR Solutions]

did you not get a share certificate when registering ?

[karl123]

did you not get a share certificate when registering ?

All that says is the company has 100 shares, but no where who owns what.

[HR Solutions]

All that says is the company has 100 shares, but no where who owns what.

Oh .... Ours was split between the directors/shareholders

[Andromeda]

You MUST record the issue of the shares in the minutes of a directors' meeting. The proceed (total price) must also be decided and minuted. The 100 shares are what is authorised; you do not have to issue all of them, but you can.

The Companies Act lets you decide whether the shares are certificated or not. If not, then they are merely entered in the register. If they are then you should produce share certificates.

[MariliseM]

Hi Karl123

Shareholding is an internal function and the Companies and Intellectual Property Commission (CIPC) does not issue the share certificates. You only need to update your company MOI (Memorandum of Incorporation) with CIPC if you change the amount of shares the company owns.

Do a search on the internet for a sample of a South African company share certificate. I generally run a basic Excel spreadsheet for clients with certificate issue numbers, owner details etc. I also ensure each share holder signs the certificates.

I do believe it is important to formally record the shareholding legally - never know what might happen in a business.