Where does company shareholding get registered?
I get so many people asking me why we have not registered them as shareholders at CIPC, it’s time to explain.
- Members of CCs are registered at CIPC (because they are, amongst other things, “directors” of the CC).
- Directors of companies are registered at CIPC.
- Shareholders are not registered anywhere, except in the share register.
- The share register is usually an Excel sheet filed on the server at the registered office of the company. That’s it! There’s the only place you will find the shareholders.
- A share certificate is issued by the company secretaries to the shareholder and that is proof of ownership.
- Share certificates must be signed by the company secretary and one director or by just two directors.
- When shares are transferred, the old share certificate is cancelled and new a new one issued.
- The transfer is recorded in the share register.