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Board Resolution Approving Subdivision of Issued Shares

This template is a board resolution form for a company to officially approve the subdivision of its issued shares. It should be used when a company decides to increase the number of shares while decreasing their nominal value, typically to improve liquidity or make shares more accessible.

Updated 15d ago
board resolutionshare subdivisionequitycorporate governancecompany lawsharesstock splitSouthern Africa

{{company_name}}

{{company_address}}

Phone: {{phone}} | Email: {{email}} | Web: {{website}}

Board Resolution Approving Subdivision of Issued Shares

Board Resolution Approving Subdivision of Issued Shares

BOARD RESOLUTION FOR THE SUBDIVISION OF ISSUED SHARES

Date: {{date}}

Company Name: {{company_name}}

Company Registration Number: {{company_registration_number}}

Registered Address: {{company_address}}

WHEREAS

The Company currently has an authorised share capital comprising of {{current_authorised_shares}} ordinary shares of ZAR{{current_nominal_value}} each (or equivalent local currency).

The Board of Directors deems it desirable and in the best interests of the Company and its shareholders to subdivide the issued ordinary shares.

This subdivision is intended to improve the liquidity of the Company’s shares and make them more attractive to a wider range of investors.

RESOLVED, THAT

Each of the existing issued ordinary shares of ZAR{{current_nominal_value}} (or equivalent local currency) in the share capital of the Company be and is hereby subdivided into {{new_shares_per_old_share}} ordinary shares of ZAR{{new_nominal_value}} (or equivalent local currency) each.

The total number of issued ordinary shares of the Company shall, upon the subdivision taking effect, be {{total_new_shares}}.

The effective date of this share subdivision shall be {{effective_date}}.

All rights and obligations attached to the subdivided shares shall be proportionate to their new nominal value, and the aggregate nominal value of each shareholder’s holding shall remain unchanged immediately after the subdivision.

The Company Secretary be and is hereby authorised to do all things necessary to give effect to this resolution, including but not limited to, making all necessary filings with the Companies and Intellectual Property Commission (CIPC) or equivalent regulatory body in the relevant jurisdiction, updating the Company’s share register, and issuing new share certificates (where applicable) reflecting the subdivided shares.

CERTIFICATION

We, the undersigned directors of {{company_name}}, hereby certify that the foregoing resolution was duly passed at a meeting of the Board of Directors held on {{meeting_date}} at {{meeting_time}} at {{meeting_location}} and that the said resolution has been duly recorded in the minute book of the Company and is in full force and effect.

DIRECTOR SIGNATURES

Director's Name: {{director_name_1}}

Signature: _________________________

Date: {{signature_date_1}}

Director's Name: {{director_name_2}}

Signature: _________________________

Date: {{signature_date_2}}

COMPANY SECRETARY

Company Secretary's Name: {{company_secretary_name}}

Signature: _________________________

Date: {{signature_date_company_secretary}}

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