Log onto the CIPC E-services website www.cipc.co.za / Online Transacting / E-services and logon using your customer code and password. Select Authorised Share Changes, type in the company registration number and view the displayed authorised share information.
You can transfer shares for a private limited company between new and existing shareholders provided that the relevant notice is issued. To transfer shares for a company you will need to obtain and complete a Stock Transfer Form.
It is standard practice that for a share transfer in a private limited liability company to be effective, the transferor and transferee must execute a share transfer form, pay stamp duty on it and present it to the company for registration, together with the related share certificate, if any.
Apply for the director change online
- Click on On-line transacting, and then on Company Director Changes.
- Login, using your customer code and password and follow the prompts.
- Click on Amend Company Director Details.
- The Enterprise Details and Current Director Details will be displayed.
At the Board Meeting, pass a Board Resolution to call for an Extraordinary General Meeting and issue notice pursuant to the provision of Section 101 of the Act, where the altered clause on authorised capital in the Memorandum of Association can be presented for approval by passing an Ordinary Resolution.
You need to execute and register a share transfer deed in FORM 7B. It needs to be filled and signed by the donor. Depending on which value is higher, the face value or market value of the shares on the date of the document, stamp duty is payable at the rate of 25 paise for every 100 rupees.
Transfer of Shareholding
- The parties involved i.e. the outgoing director(s)/transferor(s) and incoming director(s)/transferee(s) should sign a transfer deed (Form of transfer).
- The company secretary will then assess the stamp duty and have the transfer lodged (registered) at the Registrar of Companies.
- Income Tax PAN. Income Tax PAN of both transferee and transferor.
- Passport Photo. Passport Photo of both the transferee and transferor.
- Aadhaar Card. Voter ID Card of both the transferee and transferor.
- Share Certificates. Original Share Certificates of the Transferor.
A new share certificate, signed by at least two individuals, authorised by the company to do so, reflecting that you are the owner of the shares. Obtaining a copy of the board resolution authorising the transfer and a copy of the updated share register that records your name as the owner of the shares.
Share certificates are not issued by CIPC the registrar of companies, nor does CIPC keep track of the ownership of your company at the present time. They keep track of directors, namely people reponsible for the company legally and appointed by the shareholders.
Generally, a majority of shareholders can remove a director by passing an ordinary resolution after giving special notice. This is straightforward, but care should be taken to check the articles of association of the company and any shareholders’ agreement, which may include a contractual right to be on the board.
The owner must endorse the stock by signing it in the presence of a guarantor, which can be their bank or broker. There may also be a form on the back of the certificate, which relates to the transferring of ownership. After the certificate is complete, it will be rendered non-negotiable and becomes transferable.
Shareholders in a public company can also remove a director by following the process set out in the company’s constitution. … Shareholders must make this notice to move a resolution for a director’s removal at least two months before the shareholders meeting.
Only fully paid shares can be converted into stock. The issue of a partly paid-up stock is void. A company limited by shares or by guarantee having a share capital, if so authorised by its articles, may alter its memorandum for converting any of its fully paid- up shares into stock or vice versa.
Authorised Share Capital
- It is the maximum amount of the capital for which shares can be issued by the Company to shareholders.
- The Authorised capital is mentioned in the Memorandum of Association of the Company under the heading of “Capital Clause”.
Yes Authorized share capital can be reduced, this is known as Diminution. Diminution of capital (i.e. share capital) of a Company means reduction of the share capital by cancellation of the unsubscribed part of the issued capital.