Issued Shares

Issued Shares are the shares your company has actually allocated to shareholders.

These represent real ownership in the business.

Unlike authorised shares (which set the limit), issued shares are the ones that have been assigned.

They determine:

  1. Who owns the company
  2. How much each person owns
  3. Who has voting rights and receives dividends

If shares haven’t been issued, they don’t count for anything yet, they’re just potential.

"What’s the difference between Issued and Authorised Shares?"

  • Authorised Shares = the total number your company is legally allowed to issue
  • Issued Shares = the number of shares that have actually been given to shareholders

For example:

If you’re authorised to issue 1,000 shares, and you’ve issued 100, then 100 are in circulation (owned by shareholders), and 900 are still unissued.

"Why do Issued Shares matter?"

Issued shares determine:

  • Ownership percentages
  • Voting power in shareholder meetings
  • How profits (dividends) are divided
  • What happens if someone wants to buy in or sell their stake

If you bring on a partner or investor, you’ll likely issue shares to them.

That’s how you legally formalise ownership.

"How do I issue shares?"

To issue shares, you need to:

  1. Hold a shareholder resolution approving the issue
  2. Update your company’s share register
  3. Prepare and sign share certificates
  4. Record everything properly for compliance (especially for B-BBEE and tax purposes)

Govchain can help guide you through the full process and ensure it’s done correctly.

"Can I issue more shares later?"

Yes.

As long as…

  • You haven’t reached your authorised limit, or
  • You file a CoR15.2 to increase your authorised shares

You can also buy back shares, transfer them between people, or change how they’re structured, but all of these changes must be documented and managed carefully.

"Do I need to report Issued Shares to CIPC?"

Not in all cases.

CIPC doesn’t track every share issue or transfer, but:

  • You must keep an accurate share register at your registered office
  • You may need to update your MOI or B-BBEE documents if your shareholding changes
  • If you make significant changes (like new classes of shares), you’ll need to file with CIPC

"How do I issue or transfer shares?"

Govchain can help you:

  • Draft the required resolutions
  • Issue or transfer shares correctly
  • Update your share register and ownership records
  • Stay compliant with CIPC, SARS, and B-BBEE requirements
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