Johannesburg – The South African reserve Bank has opened the doors for South Africans to buy shares in it.
Shares in SARB were previously closely held by a limited group of individuals.
This decision to open up shareholding follows a 2016 North Gauteng High Court ruling directing 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 90 of 1989 (SARB 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 henceforth applied to a shareholder and their associates, SARB explains.
After some shareholders had failed to comply with the legislative measures pertaining to this limitation of shareholding, the SARB applied for, and was granted, a court order authorising the sale of the shares held by persons that exceeded this statutory limit.
“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, it explains.
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, it notes. Members of the public who would like to take advantage of this opportunity to purchase shares in the SARB can visit www.resbank.co.za for more information.
BUSINESS REPORT ONLINE
Source: IOL – Companies
South Africans invited to buy shares in Reserve Bank