When do we need Share Certificates? When conducting business (like opening a Bank Account as you will be asked for this document as it shows the bank who owns the business) and also when applying for Tenders/ Government or other Contract work. Share ownership is vital when it comes to proving the Company’s B-BBEE Status. The more the shares are owned by Black people – the better the rating.
What is a Share Certificate? A Share Certificate is proof that a specific person, another Company or Trust owns a certain number of shares in a business.
Who should get a Share Certificate? Share (or Shareholder) Certificates are issued to the Owners of a business.
What are Shareholders? The owners of shares are known as Shareholders. A Shareholder may have a share in the profit and may also share in the decision making process of the company.
Who issues Shares? It is the responsibility of the Directors of a company to issue shares. The Directors can however give this authority to someone else.
As you can see, Shareholder Certificates are VERY important documents and should be stored in a safe place.