What is a Share?
A share is a unit of ownership in a company or other organization. When you buy shares in a company, you become a shareholder. As a shareholder, you have certain rights and privileges, including the right to vote on company decisions and the right to receive dividends.
What are the advantages of a share?
There are many benefits to owning shares. For example, shares can provide you with a source of income through dividends. They can also increase in value over time, providing you with the potential to make a profit when you sell them. Shares can also give you a share of ownership in a company, which can be an advantage if the company is doing well.
Finally, owning shares can give you the opportunity to influence the direction of a company, through your right to vote on company decisions. This can be a valuable privilege if you believe in the company’s mission and want to help it succeed.
Mandatory Shares
In order to become a member of Isikhungo Sabantu Financial Services Co-operative each member must be a member in good standing with Isikhungo Sabantu NPC, purchase the minimum number mandatory shares of 1 (one) at the price set by the General Assembly.
Members are however encouraged to purchase more than the minimum number of shares by purchasing voluntary shares. A shareholder will not be able to sell their shares back to the FSC for a period of 36 months (Three Years) after purchasing them.Â
Mandatory shares are transferable between members after 3 months of purchasing them from the CFI at a price deemed fit by the respective selling member. A fee of R50 is payable to the FSC for each mandatory share sold between members.Â
The dividends when payable to be on the bases of the number of shares and not the value. A total of 1 Million (One Million) Mandatory Shares will be created.
Voluntary Shares
Members that want to have more than one (1) share will be encouraged to buy voluntary shares. Voluntary shares will be non-withdrawable.
Voluntary shares will be sold at R500 each in 2019, with the price increasing each year as determined by the Board.Â
A member will be able to buy the set number of shares provided they don’t exceed 20% of the total assets when combined with the mandatory shares.Â
The dividends paid for the voluntary shares will be determined by the board and management from time to time depending on the performance of the FSC. A total of 1 million (One Million) Voluntary shares will be created and the dividends when payable to be on the bases of the number of shares and not the value.Â
Members will be able to sell amongst each other voluntary shares at the value that they deem fit to do so. A fee of R50 will be payable on the sale of voluntary shares between members to the FSC.
Corporate Shares
Isikhungo Sabantu will sell shares to other organization that fall within the common bond of the FSC.
These will include co-operatives, civic organizations, NPOs, and members companies, etc.
The cost of a share for these organisations will be R1000.