Post and Telecommunication-related Matters Act, 1958 (Act No. 44 of 1958)Chapter II : Finance12W. Financial instruments |
| (1) | Subject to the provisions of subsections (2) and (3) and notwithstanding anything to the contrary contained in the Companies Act, the postal company and the telecommunications company may, for as long as the majority of their issued equity shares are held by the State, issue stock, securities, bills, promissory notes, debentures, debenture stock, obligations or other financial instruments as proof of a loan of money and may negotiate or have them listed in the same manner and on the same financial markets or on the same stock exchange as is customary in the case of similar financial instruments issued by the State. |
[Subsection (1) substituted by section 85 of Act No. 124 of 1998]
| (2) | Financial instruments referred to in subsection (1) shall only be issued with the approval of the Minister. |
[Subsection (2) substituted by section 3 of Act No. 35 of 1995]
| (3) | Any financial instruments issued by a successor company before the commencement of this section and which purported to be public stock or bonds issued by the Director-General in terms of section 12I(1)(b), shall be deemed to be financial instruments issued by the company concerned in terms of subsection (1). |
| (4) | Public stock or bonds which immediately prior to the deletion of section 12U(5) by the Posts and Telecommunications Acts Amendment Act, 1992, were in terms of the said provision deemed to be debentures issued by the successor company concerned, shall be deemed to be financial instruments issued by the company concerned in terms of subsection (1). |
| (5) | The provisions of the Companies Act in respect of debentures shall, subject to subsection (8), not apply to financial instruments referred to in subsections (1), (3) and (4). |
| (6) | A successor company may engage in commercial transactions of whatever nature, including repurchase agreements, in respect of its own financial instruments and similar financial instruments issued by the State or other institutions. |
| (7) | A successor company shall, as far as possible, keep a register of all financial instruments referred to in subsections (1), (3) and (4). |
| (8) | Stock referred to in subsections (1), (3) and (4) may be transferred by means of a securities transfer form in the manner referred to in section 135 of the Companies Act, and the stock certificate issued by the successor company concerned in respect of such transfer shall be prima facie evidence of the right to such stock of the person named therein as the holder of such stock. |
| (9) | No levy, tax, stamp duty, fees or other costs of whatever nature shall be payable in respect of the issue or transfer of any financial instrument referred to in subsections (1), (3) and (4). |
| (10) | No provision of this section shall be construed as derogating from the powers of a successor company in terms of its memorandum of association or its articles and under the provisions of the Companies Act, to issue, negotiate or list any financial instrument as proof of the loan of money. |
[Section 12W inserted by section 10 of Act No. 101 of 1992]