Company share certificate 2021 (FREE Download template) - YouTube

so there has been an uncertainty in practice  with regard to the transitional status and  

treatment of shares under the companies act with  a number of questions being raised in this regard  

to issue these shares a company must first  ensure that its memorandum of incorporation  

sets out the classes of shares and the number of  shares each class that a company is authorized  

to issue in addition in respect of each  class of shares the moi of a company must  

set out the preferences rights limitations and  other terms associated with a class of shares  

the number of authorized shades of each class in  the preferences rights limitations and other terms  

associated with a class of shares may only be  charged by an amendment of the moi by a resolution  

of the board of the company who may increase  or decrease the number of authorized shares of  

any classes or reclassify any classified shares  that is amend the terms attached to such shares  

that have been authorized but not issued unless  the memorandum provides for a different approval  

process and may only be changed by special  resolution if any of the shares in a specific  

class have already been issued so it is important  to know that where is the general practice  

under the company's act of 61 of 1973 the old  company's act was to reflect the terms of certain  

classes of shares in subscription agreements or  other documents separate from the old articles of  

association especially when issuing preference  shares or funding for funding purposes in the  

company's act now requires that all preferences  rights limitations and other terms associated  

with a class of shares must be contained in the  memorandum of incorporation failing which they may  

not be enforceable it is also critical to ensure  that the terms of the same class of shares are  

indeed the same for example if a company issue  shares to its shareholders of the same class say  

ordinary shares but provides in the memorandum  of incorporation or the shareholders agreement  

which we also have a video of that one  shareholder will have more voting rights than  

another shareholder or greater rights as regards  dividends not withstanding equal shareholding the  

shareholders in fact hold different classes  of shares and the companies required under  

the companies act to name the classes of shares  differently so share certificates are sent out  

when shares are granted and made available to  new shareholders at the time of incorporation  

and or after incorporation or when ownership of  existing shares is transferred from one individual  

to another after company formation shareholders  are required to receive a share certificate  

right after they buy at least one share a copy  of all issued share certificates must be kept  

by businesses for the records the cipc does not  keep any record of the shareholders neither the  

issued shares therefore share certificates must  be drawn up by the company itself although such is  

not mandatory in terms of the new company act so  a share certificate validates that on a specific  

date a person is the certified share owner in a  company with regards to the old company's act it  

is teen prima fakie evidence prima faki means  that it is enough evidence except the country  

is publicized in scotland of the membership  ownership in the company on the other hand  

whilst a share certificate may be given by a  company it is a pass in the members register that  

offers legal confirmation of share rights in the  company whenever trading would share certificates  

thus it is essential to also refer to the  members register to ensure the two are reliable  

what are the information details that are shown  on a share certificate so the information that  

oats to be added as part of a share certificate  template includes the name and registered number  

of the company a distinct share certificate  number and listed office address of the company  

the shareholders name the share class or  type and the shareholders address also  

the quantity of shares the share certificate  covers the degree to which the shares are paid up  

normally shares are paid up fully the ideal  share certificate template should provide  

the following a shared certificate needs  to be signed by two company directors  

a director and the company's secretary in the  event that the company has no company secretary  

but single director then the company director  in the presence of an eyewitness who confirms  

they signature every share certificate  must be dated on issuing of the shade  

when should i share certificate be issued  subject to any condition subject to any condition  

to the country in the company's articles of  association there exists a legal time limit for  

allotting a share certificate after your primary  enlistment company share certificates should be  

issued to subscribers within two months generally  this is carried out as part of the first board  

meeting thereafter a company have or they after  a company have to within two months of share  

issuance a lot the share certificate that  represents those shares in the same tomb or  

the same two month time limit apply subsequent to  any share transfer even those share certificates  

need to be issued to the enlisted holder you  are you are not under any condition to forward  

a copy of the shared certificate to the cipc  any other rules for alerting share certificates  

are that just like with other areas of company  management prior to issuing shared certificates  

it is important to check the company's memorandum  of incorporation the benchmark practice is for any  

business to allot a single share certificate in  respect of all shares allotted at a specific time  

even though a shareholder can ask for the split  share certificate the major case way above one  

share certificate will be necessary is  when certificates represent holdings  

in more than one share class even though  they are owned by the same shareholder  

you will have to issue a differentiate  certificate for the shares in every class  

for a mutual shareholding whilst it is good  to add the name of every individual holder of  

the certificate only one address of the initial  named holder must be shown in addition you only  

need to unlock a shared certificate for a mutual  shareholding with this certificate forwarded to  

the initial name subscriber instead of a separate  certificate to every mutual shareholder a typical  

share certificate is a rectangular document  set out in landscape orientation it states  

the dates of the issuing or relevant details  that pertain to the shares that have been taken  

on as always certain dates by a particular  shareholder share certificates can be issued  

in an electronic format as a pdf file  however several individuals prefer to  

receive traditional prints and certificates both  formats can be requested upon company formation  

if a shareholder loses their share certificate  already significantly damaged the company can  

grant another damage certificates must be returned  to the company to be destroyed in large companies  

the shareholder may be required to prove his  or her identity before receiving a replacement

except to certificate extent that a company's  memorandum of incorporation provides otherwise  

directors are authorized to issue the  shares of a company provided that the shares  

issued have been authorized by or in terms  of a company's memorandum of incorporation  

and such shares are within the classes authorized  and adequate consideration is received by the  

company for such shares generally speaking issuing  shares in a company is a simple process that all

that all that is required is for  the directors to pass a resolution  

authorizing the company to issue the shares  to a particular individual or juristic person  

subject of course to specific requirements  in the memorandum of incorporation  

or shareholders agreements this is different  from the old companies act as the old act  

always required a shareholder's resolution for the  issue of additional shares to protect shareholders  

against dilution the company's act now only  requires the approval of shareholders by  

special resolution in exceptional circumstances  namely where a company intends on issuing shares  

to a director or prescribed officer of that  company or a person related or interrelated to  

that company or director or prescribed officer  or if the shares to be issued will constitute  

30 or more of the voting rights in that specific  class a special resolution will also be required  

minority shareholders may therefore wish to  negotiate better protection with regards to  

the issue of shares and the memorandum  of incorporation to prevent the board  

from diluting the minority without having to  seek the minority's approval and that's it  

for the certificate of shares or ordinary shares  if you guys found this video interesting please  

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