MATTERS TO BE STATED IN A CONTRACT FOR THE ACQUISITION OF A SHARE
| (1) |
NAME, ADDRESS AND INCORPORATION |
| (a) |
The name, address of the registered office and of the transfer office, postal address and date of incorporation of the company which operates the share block scheme, and the address at which its financial records are kept. |
| (b) |
If appropriate, the name and address of its holding company. |
| (2) |
DIRECTORS AND MANAGEMENT |
| (a) |
The names, occupations and addresses of the directors of the company (specifying who the chairman and managing director are, if any) and their nationality, if not South African. |
| (b) |
The term of office for which a director is or has been appointed, and particulars of any right held by any person in respect of the appointment of any director. |
| (c) |
Particulars of the remuneration of directors in their capacity as directors and in any other capacity. |
| (d) |
If the share block scheme is managed by a third party under an agreement or arrangement, the name and address of that third party, and a statement as to whether or not any money relating to the share block scheme is entrusted to him. |
| (e) |
The borrowing powers of the company exercisable by the directors, and the manner in which such borrowing may be varied. |
The name and address of the auditor of the company.
The name and address and the professional qualifications, if any, of the secretary of the company.
| (a) |
A description and the extent of the immovable property owned or leased by the company. |
| (b) |
A description of the part of the immovable property which will be the subject of the right to use of the purchaser. |
| (c) |
If the company does not own the immovable property— |
| (i) |
the name and address of the registered owner; and |
| (ii) |
the terms on which the company leases the immovable property. |
| (d) |
If the immovable property in respect of which the share block scheme is or is to be operated is or is proposed to be mortgaged— |
| (i) |
the name and address of the person, or his representative, or in the case of a participation bond, the name and address of the nominee company, or its representative, in favour of whom the mortgage bond over that immovable property is or is to be registered; |
| (ii) |
the registered capital amount and duration of the mortgage bond, and the terms and conditions as to repayment of capital and payment of interest; |
| (iii) |
the annual rate of the interest payable in respect of the loan secured by the mortgage bond. |
| (e) |
The date upon which the purchaser becomes entitled to the use of the part of the immovable property referred to in sub-item (b). |
| (f) |
If the seller is aware that a sectional title register cannot be opened under section 5 of the Sectional Titles Act in relation to the immovable property in respect of which the share block scheme is or is to be operated, a statement to that effect. |
| (6) |
PARTIES TO THE CONTRACT |
The names of the parties to the contract and their respective ordinary residential or business addresses in the Republic.
| (7) |
SHARE WHICH IS SUBJECT OF THE CONTRACT |
| (a) |
A description of the share which is the subject of the contract. |
| (b) |
If the share is not registered in the name of the seller when the contract is entered into, the name and address of the person in whose name it is registered. |
| (c) |
If the share is sold by a share block developer, the number of shares held and not held by the share block developer when the contract is entered into. |
| (8) |
PURCHASE PRICE UNDER THE CONTRACT |
| (a) |
The amounts included in or payable in addition to the amount of the purchase price to be paid under the contract, specifying the matter in respect of which each such amount is to be paid, but excluding any amount payable as a penalty or damages for breach of contract or by way of interest on arrear payments. |
| (b) |
The annual rate at which interest, if any, is to be paid. |
| (c) |
The amounts in which the purchase price is to be paid. |
| (d) |
The due date or the method of determining the due date of each payment. |
| (e) |
The place where payments are to be made. |
| (9) |
CONTRIBUTIONS TO THE LEVY FUND |
The amount of the contribution which, when the contract is entered into, is to be made in respect of the share which is the subject of the contract, for the benefit of the levy fund established by the company for the purposes of the share block scheme.
| (10) |
LOAN OBLIGATION OF THE COMPANY |
| (a) |
The total amount of the company’s loan obligation, as reflected in its financial statements at the end of the accounting period contemplated in section 15 (5) (b) and ended not more than nine months before the date of the contract. |
| (b) |
The amount and terms of redemption of any loan comprised in the company’s loan obligation which, at the date contemplated in subparagraph (a), may be redeemed otherwise than in accordance with a resolution contemplated in section 14 (1) or upon the liquidation of the company. |
| (c) |
The annual rate of the interest payable in respect of any such loan. |
| (d) |
If the seller is a member of the company, the rights in relation to the loan obligation of the company ceded by him to the purchaser. |
| (e) |
The balance of the amount which the purchaser is obliged to pay to the company in relation to its loan obligation. |
| (f) |
In so far as the seller is aware, a statement in relation to any resolution which may have been passed by the members of the company to increase its loan obligation. |
The name and address of the insurance company which insured the immovable property, the amount of the insurance cover and the nature of the risks covered and, if no such insurance has been effected, a statement to that effect.
| (12) |
DOCUMENTS TO ACCOMPANY THE CONTRACT |
| (13) |
There shall be annexed to the contract— |
| (a) |
a copy of the relevant use agreement which is to apply between the company and the purchaser, and a statement by the seller as to any material difference between it and any other such agreement between the company and any member thereof having rights and obligations similar to those of the purchaser, of which the seller is aware; |
| (b) |
a statement setting out the number of shares allocated in respect of each part of the immovable property which is or may be the subject of a use agreement, and the amount each member is obliged to pay to the company in respect of each such part in respect of its loan obligation; |
| (c) |
a copy of the latest audited annual financial statements of the company and a statement by the seller as to any material changes in the state of affairs of the company since the date of those statements of which the seller is aware or, if such statements are not available, a statement to that effect; |
| (d) |
if any application in terms of the Sectional Titles Act has been or is to be made for the approval of a sectional plan in respect of any building on the immovable property, a statement as to where and when the relevant sectional plan may be inspected. |
Older Persons Act, 2006
