Retail Scheme Share Buying

A share is a unit of ownership.

When you own a share you become a part-owner (shareholder) of a company and you will have the right to receive any dividends paid on each share that you own.

Shareholders receive an electronic or paper copy or summary of the company's annual report and financial statements as well as any other shareholder communications.

You will also have the right to attend, ask questions and vote at general meetings of the company.

The ownership of a company can be shared by many people and organisations.

A listed company is a public company that trades on the stock market, where the ownership is organized through shares of stock that can be bought or sold on the stock market. For example Shoprite, Old Mutual & Multichoice.

• A dividend is a sum of money that a company may pay its shareholders for each share they hold.
• The amount of money paid out is decided by the company’s Board of Directors and is based on the company’s profits and need for funds.
• There is no guarantee that a company will make dividend payments in any given year or years some companies pay a dividend twice a year.

The value of dividends you may receive will be determined by:

• The dividend rights attaching to your shares, if any;
• The financial performance of the company;
• The policy adopted by the company as to how much of their profits they want to declare as dividends;
• Requirements of the Companies Act to ensure their company still has enough cash after paying the dividend; and
• The number of shares you hold

The share price will be influenced by a number of factors, some of which are outside the company’s control. The factors may include:

1. The performance and prospects of the company or the industry in which the company operates.
2. Political, general economic, financial and stock market conditions.
3. Perceptions of investors about the above factors.

As with all listed shares, the share price of any listed company on any of the stock exchanges where it is listed can go up or down. If you sell your shares, you may receive more or less than you originally paid for them.

• You can vote at the general meetings of the company.
• You are entitled to one vote for every share held.

You will be notified using the contact details you have provided to your stockbroker of the date and time of the listed company’s annual general meeting.

The company will have certain decisions (termed resolutions) that it requires shareholders to make at the annual general meeting.

As a shareholder, you are entitled to vote on those decisions. There are certain steps you will need take in order to be able to participate and vote on these company decisions at the annual general meeting. Your stockbroker will communicate the required steps ahead of the meeting.

Every company is required to hold an annual general meeting of its shareholders.

There is a share price summary section on the listed company’s website where you can view the trading place of the shares. During trading hours the price will generally be updated every 15 minutes. It is important to remember that this price should only be used as a guide and may not be the exact price at which you could buy or sell shares.

The share price at the end of the previous trading day can generally be found in the financial pages of the daily press and through other media in the countries where the shares are listed. In addition, there are a number of internet sites through which share price information can be obtained. These can be found by using an internet search engine.

Listed companies generally announce their half year results during their financial current year and full year results immediately after the previous financial year. The date of the next results announcement can be found on their website.

You can view an online version or download a PDF version of the Annual Report and Accounts from the financial reports section of the listed company’s website.

The Annual General Meeting date is generally announced on the company’s website. The exact date can be found in the calendar.

A listed company will pay dividends should a dividend be declared by shareholders. Some companies will pay an interim dividend and/or a final dividend.

Dates for payment of dividends can be found on the company’s website.

Shareholders with queries related to their dividends should contact their registrars (the registrar verifies the shareholders information regarding, the stock, the record date and the number of shares owned).

Yes, this is possible. You need to complete a Bank Mandate Form and send it to the registrars.

You will need to complete a Change of Banking Details Form and send it to your registrars of the listed company.

This is the process whereby shares are bought or sold.

You can buy and sell shares through a stockbroker or any bank that offers a share-dealing service. You should seek advice from an independent financial adviser.

Shares have a price at which they are traded. This price changes all the time. Over and above the cost of the share, there are other costs associated with buying and selling shares, including fees paid to the stockbroker and to the stock exchange.

Shares are typically bought through a stockbroker, who may require you to deposit cash into their bank account before you can buy shares.

It may take a few days, however, once shares have been sold through an exchange, the stockbroker will receive the proceeds of the sale within 3 days. The cash received will be in your stockbroker account, earning interest, until you instruct your stockbroker to transfer the cash into your normal bank account.

The tax consequences of keeping or selling your shares, or buying more shares, depend on your own circumstances and the country in which you are resident.

If you are in any doubt about your tax position, you should seek independent professional advice.

Registrars generally provide the facility for you to check your registration details online or through a call centre. You will need your Shareholder Reference Number for this purpose.

The registrar may ask you security questions to verify that they are speaking to the legitimate owner of the shares for your protection.

You can find your Shareholder Reference Number on the payment advice notice or tax voucher accompanying your last dividend payment or notification.

The number is also on forms of proxy for Annual General Meetings and Extraordinary General Meetings.

You should complete a Change of Address Form and return it to the registrar, having followed the instructions on the form. If you need assistance with completing the form or are unclear about the requirements, please contact the registrar, who will be able to help you.

You need to contact the registrar, who will tell you what information and documents they need in order to effect the change.

• You should notify the registrars as soon as possible, either in writing or by telephone, so that a restriction can be placed on the holding in case anyone attempts to use your certificate fraudulently.
• You will then be sent a letter of indemnity, which must be completed and returned to the registrars, so that a replacement certificate can be issued.
• A fee will be payable for this to cover the administration costs involved.

We recognise that this is a difficult time for you, but please contact the registrar as soon as possible.

The action you need to take depends on whether the shares were held in sole or joint names, and the registrars will be able to help you with the documentation required and make the process as straightforward as possible for you.

If you hold your shares in the form of certificates, you will need to complete a Stock Transfer Form and return it to the registrars, together with your share certificate(s), after it has been stamped (i.e. any stamp duty payable on the transfer has been paid) to arrange the transfer of ownership.

If you need assistance completing the form or are unclear about the requirements, please contact the registrars who will explain it to you.