The share represents the contribution of a member into the limited liability company’s share capital which is expressed in percentage. A company member acquires a share in the company proportionately to the value of his contribution into the company’s share capital, unless otherwise provided by the memorandum of association upon company incorporation or by a unanimous resolution of the general meeting.
A company shareholder may have only one share in the company.
If a company shareholder acquires more shares, these shares are joined and comprise one share.
Legal Nature of Shares
A company’s shares are not securities.
A company’s shares may not be acquired, nor may they be disposed by forwarding a public offer in terms of the law regulating the capital market. Continue reading Shares in limited liability company according to companies act – basic rules