A Share Certificate is a physical, written document signed by the Directors of a Company, and serves as legal proof of each Director’s shareholding / ownership in the Company. These Certificates need to be prepared according to the Companies Act of 2008 through a Company Secretary. If the process is not followed accurately, the Certificates will be declared invalid in court by South African Companies law.
Please note: This cost includes Share Certificates for up to 4 Shareholders. For R200 extra you can include an ‘Electronic Share Register’ to formally track share transactions.
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1. Banks. Most banks requires new companies to have valid Share Certificate when opening a bank account.
2. Change of Shareholding. If Shareholders are added or removed, the original Share Certificates will be required. To track shareholding changes in your company you need a Share Register as well. This is a formal electronic ‘logbook’ which indicates exactly when shares has moved hand between which shareholders.
3. In Court. This document is proof of your ownership in a Company – if there is ever a dispute which are taken to court, this document will be the difference between a Shareholder’s success or failure to prove ownership in a Company.
In summary, a Share Certificate is proof of how much ownership a person has in a specific Company.
NOTE: Existing Companies may need other services before they can issue Share Certificates to new shareholders. Read about Share Transfers, Share Registers and much more.