DO YOU OWN YOUR SHARES? YOU MIGHT NOT.
When you purchasing and transferring shares in a private company, make sure you dot all the i’s and cross all the t’s, before later claims are made to your hard-earned success. CHALLENGE: You believe you’ve successfully purchased shares to your business, only to find out later that what you thought you owned, is not in fact yours. We’ve recently had some interesting matters at Legal Legends, in particular one relating to the purchase and transfer of shares in private companies. For eg. When you specially look after Employment Agreement , you also share and transfer shares then you feel some challenges. Private companies are those entities that are identified by the designation of (Pty) Ltd or Proprietary Limited as part of their names. The Companies Act of 2008 (the Act) defines a share as “one of the units into which the proprietary interest in a profit company is divided.” But Fidelis Oditah, a leading legal author and professor, once very usefully explained the le...