Shared ownership in South Africa is validated with an issuance of a certificate. That said, a share certificate is a document given out to an individual once they buy allotments in a company of their choice. They can only be signed by company directors. Do you know where you can find one in South Africa? At the moment, you can find a share certificate template online.
The document is also known as stock proof. Often, the elements of this document may vary depending on a company, among other aspects. They can only become void once one transfers or sells them to another holder. So, what else do you need to know about this essential document?
About a share certificate template South Africa
Below are the essential elements to expect in the template as well as other facts:
Features of a share certificate template South Africa
Irrespective of the company, a share certificate template should be able to cover the following information:
- A unique number
- Official names of the company
- A registration number
- Full names of the holder
- The ID number of the holder
- Quantity of the stake owned by an investor
- Type of stock held by an investor
- Location of the company
- Date of issuance
- A seal of the company, if any
Example of a share certificate template
Below is a standard example of the document:
Remember, the company owners determine a share certificate design. As much as the above information is adequately captured in the document, you do not have to worry about the style.
Most companies issue it electronically. However, it is given out two months after the purchase of the stock. The two parties should keep a copy of the document. It can be used in an instance of legal complications in court.
Who issues share certificates in South Africa?
Company directors and other parties owning the firms are the only ones responsible for issuance of issue stock credentials. In other words, the registrars of companies or CIPC are not responsible for any activities involving issuance or verification of this document.
Are share certificates necessary?
Yes. Without them, one cannot claim ownership of an organization. Thus, be sure to request one once you purchase the stock. Also, it is the obligation of a firm to provide them to their customers two months after the purchase of stock. Also, this is the only necessary document that can affect the transfer of stock from one investor to another.
Who can sign the share certificate?
Typically, entry into the registrar of members certifies that an investor owns stock in a particular company. The certification is done by the signature of two directors of a company. In some instances, the signature of a secretary may be necessary. Similarly, if a company has one director, a witness' signature is essential.
Do I need share certificate to sell shares?
It is mandatory to have the document to transfer or sell stock to another person. Otherwise, you are not in a position to do so. If you do not have one, you can reach out to the company for the credential because they keep a copy.
How do I get a share certificate?
To prove ownership of allotments, an investor needs to have this document. The credential is only given out to persons that make a purchase. You can get one from a company director. Most companies prefer to give an electronic proof.
If you are a company owner, you can use a share certificate generator online. Interestingly, they are free. You can edit it as you want. Better still, if you are not an expert, you can seek help from a professional to edit one for you. Different organizations in South Africa commonly use the share certificate template word.
What is a share certificate how it is issued?
As mentioned earlier, it is a document certifying that an investor owns stock in a particular organization. It is signed and given out by a company director. The declaration highlights your information as well as the company details, including the type and number of stake a member holds.
Do you have to issue share certificates?
It is mandatory for a firm to give out this document to its investors. Otherwise, without them, it will be impossible to prove that they own allotments in your firm. In some countries, a company can be held responsible if they fail to meet the requirement. Besides, not so many investors will agree to buy allotments without being given proof of ownership.
Application for share certificate
Investors can apply for it in an instance the company has not issued on in the specified time. As an investor, you are entitled a duplicate of the proof. It will be sent to you electronically after the company secretary has sent you an allotments notification. Afterwards, you can choose to print it to have a copy with you.
Overall, if you want a perfect share certificate template, you can find it online for free. As a business owner, this document should be a necessity. Besides, no investor will buy allotment in your firm without proof of ownership. Importantly, be sure to find one that meets all the elements.
DISCLAIMER: This article is intended for general informational purposes only and does not address individual circumstances. It is not a substitute for professional advice or help and should not be relied on to make decisions of any kind. Any action you take upon the information presented in this article is strictly at your own risk and responsibility!