• CIPC

    Share certificates

    When a company is registered, shares are automatically issued. These shares have to be allocated and share certificates issued to the holder/s of these shares. What are the roles of directors and shareholders? Directors are seen as employees of the company. Section 68(2) of the companies act deals with the appointment of directors. It stipulates that directors are to be appointed by entities who have a voting right, i.e the shareholders. The standard memorandum of incorporation of companies stipulate that directors are appointed for an indefinite term. Shareholders are ultimately the owners of the company. Therefor it is important to issue share certificates when a company is registered. The fact…

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