By: Rosalind Friedericksen
Q&A with Rosalind Friedericksen, Associate Director Corporate Services SA
Why have share schemes become increasingly important within the South African corporate landscape?
When evaluating certain mergers and acquisitions, the South African Competition Commission requires the establishment of employee share schemes for both public and private companies. This has led to the increasing importance of long-term incentive, employee and B-BBEE schemes. Their importance has been further boosted by the fact that they often aim to motivate and align key staff members’ interests with the broader objectives of the company, ultimately enhancing value for all.
Why can such share schemes be burdensome and complex to administer?
It is crucial for the schemes to establish their own unique identity separate from the company in which they are invested. This ensures complete independence in governance and decision-making processes and demonstrates ultimate control by the intended shareholders or beneficiaries. It can, however, make them complex to administer.
Why use Stonehage Fleming to establish corporate share schemes?
We understand the importance of long-term incentive share schemes, employee share schemes and B-BBEE share schemes. Working closely with in-house HR functions, we assist various corporate entities with the independent administration of their share schemes.
Among others, our services include the provision of independent directors and trustees, trustee and director training, accounting and tax compliance services, beneficiary and shareholder communication and meeting management.
For more information, contact Rosalind directly at rosalind.friedericksen@stonehagefleming.com