Shares are the units into which the ownership interest in a profit company is divided. The share capital of a company is comprised of the funds contributed by shareholders to the company in exchange for their shares in the company.
The new Companies Act, 2008 has changed the basis on which companies are capitalized. Shares issued in terms of the 2008 Act have no nominal or par value. The board must determine the price or other adequate considerations at which shares may be issued at the time of issuing the shares.
Companies that do have no par value shares, after the implementation of the Companies Act, 2008, on 1 May 2011:
May not authorize any more or new par values shares, and
May not increase or subdivide par value shares