130. Transfer of shares and debentures in public companies

Question 1

130. Transfer of shares and debentures in public companies

Answer 1

General overview
[130.01] Sections 130 to 130AB set out the procedures for the transfer of shares or debentures from one member to any other person in a public company. For the first time, a separate procedure is provided for the transfer of shares, debentures or other interest in public companies. The previous regime for the transfer of shares, debentures and other interests in a company was contained in ss 126–128. Section 128A which provided that upon a transfer of shares, the company may lodge a notice of transfer of shares with the registrar, has been repealed by Act No 36 of 2014. This requirement is now contained in ss 128(1)(a) and 130(2).

Question 2

Formalities

Answer 2

[130.02] Subsections (2) and (3) provide that the public company shall lodge a notice of transfer in prescribed form with the registrar which states: (i) every other transfer that has been previously effected, prior to the said notice; or (ii) the shareholder(s) who holds the largest number of shares after the transfer.