For just R3‚ you as an ordinary member of the public can buy one share in the South African Reserve Bank.
The SARB on Thursday invited South Africans to acquire 149‚200 shares in the central bank.
These became available for sale after the High Court of South Africa last year directed some SARB shareholders and their associates to sell shares that were in excess of the statutory limit of 10‚000 shares per person‚ together with their associates.
The South African Reserve Bank Act was amended in September 2010 to extend the 10‚000 limitation on shareholding in the SARB to include associates of shareholders. The 10‚000 limit was then applied to a
shareholder and their associates.
“After some shareholders had failed to comply with the legislative measures pertaining to this limitation of shareholding‚ the SARB applied for‚ and was granted‚ an order by the High Court of South Africa (Gauteng Division‚ Pretoria) authorising the sale of the shares held by persons in excess of the
statutory limit‚” the bank explained.
“The SARB would like to use this opportunity to diversify its shareholder base by encouraging all eligible South Africans to take up this opportunity to own shares in the central bank of the country.”
“The concept of private shareholding in the SARB is based exclusively on the principles of shared community representation and participation in the governance of the SARB for the purposes of increased independence‚ transparency and accountability in the interest of all South Africans.”
The SARB functions in the public interest and is not driven by a profit motive. However‚ subject to there being sufficient resources to do so‚ SARB shareholders are paid a dividend of 10 cents per share‚ an amount which is stipulated in law.
Since its establishment‚ the Reserve Bank has always had private shareholders. Today the Bank has more than 660 shareholders and its shares are traded on an Over-the-Counter Share Transfer Facility market co-ordinated within the Reserve Bank.
The SARB has a share capital of R2 million which is divided into 2 million ordinary shares of R1 each. As at 1 March 2017‚ SARB shares traded at R3.00 per share.
The bank’s operations are not driven by a profit motive.
It states on its website that‚ “after allowing for certain provisions‚ payment of company tax on profits‚ transfers to reserves and dividend payments of not more than 10 cents per share to shareholders‚ the surplus of the Bank’s earnings is paid to the Government. The bank’s operations are not driven by a profit motive‚ but by serving the best interests of all the people in South Africa”.
You will also not be able to influence how the bank is run.
“Shareholders have no say on any policy decisions that the executive management of the SARB takes in implementing the SARB’s constitutional mandate.”
At the annual ordinary general meeting (AGM)‚ however‚ shareholders elect a maximum of seven non-executive directors from a list approved by a panel chaired by the Governor of the SARB. Shareholders also discuss the Annual Report and auditors’ report‚ appoint external auditors and approve their remuneration and consider any special business that may have been placed on the agenda of the AGM.
See more here: www.resbank.co.za