The Share Confirmation Letter is a crucial document in South African corporate governance, used to provide formal written confirmation of share ownership or recent share transfers. This document is commonly required when shareholders need to verify their holdings for various purposes, such as loan applications, estate planning, or regulatory compliance. The letter must comply with South African Companies Act requirements and typically includes specific details about the shares, including class, number, and distinctive numbers if applicable. It serves as an official record and may be needed for tax purposes, particularly in relation to Securities Transfer Tax. The Share Confirmation Letter is especially important in cases where the original share certificate needs to be verified or when electronic records require formal confirmation.
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1. Letter Header: Company letterhead, date, reference number, and recipient's details
2. Opening Statement: Clear purpose statement of the letter (e.g., 'Confirmation of Share Ownership')
3. Share Details: Specific details of shares including number of shares, class of shares, distinctive numbers (if any), and percentage of total issued share capital
4. Shareholder Information: Full details of the shareholder including name, registration/ID number, and address
5. Confirmation Statement: Formal confirmation of share ownership or transfer details
6. Share Certificate Reference: Reference to relevant share certificate numbers and dates
7. Authorization: Signature block with company director or authorized signatory details
1. Transfer Details: Include when confirming a recent transfer, showing details of the transfer transaction and previous owner
2. Payment Confirmation: Required for new share issuances or transfers, confirming receipt of payment
3. Rights and Restrictions: Include when confirming special rights or restrictions attached to the shares
4. Tax Declarations: Include when relevant for Securities Transfer Tax purposes
5. Dividend Information: Include if confirming any dividend rights or recent dividend payments
6. Company Secretary Attestation: Additional verification by Company Secretary when required by company constitution
1. Share Certificate Copy: Attach copy of the actual share certificate
2. Share Calculation Schedule: Detailed breakdown of share calculations if multiple transfers or complex holdings are involved
3. Historical Transfer Record: Schedule showing the history of transfers for these shares if relevant
4. Rights and Preferences: Detailed description of share rights and preferences if shares are not ordinary shares
5. Securities Transfer Tax Declaration: Required forms for tax purposes if this relates to a transfer
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