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- If the investor dies, what will happen to his/her shares/units?
Securities, including shares and units, are assets like any other asset (house, plot, car),
which are transferable and inheritable. Dependants of a deceased person are entitled to
inherit securities owned by the deceased according to the Will or the governing law.
- Why companies do not meet traveling, accommodation and other
costs for shareholders while traveling / attending Annual General
Meetings and Extra Ordinary General Meetings)?
This is the practice internationally. Shareholders' worth is reflected in share value.
Shareholders therefore, when attending an Annual General Meeting (AGM) or an
Extraordinary General Meeting (EGM), exercise their rights to supervise the Board of
Directors by approving or not approving proposals from the Board. Shareholders
therefore do attend such meetings to safeguard their interest in the company. Paying
shareholders who do attend AGMs/ EGMs would mean that the company has to
increase expenses and reduce profits attributable to shareholders. Though, some
companies may have a different arrangement which may appear unique. Foe example,
CRDB Bank Ltd has a unique structure under which each branch of the company appoint
Representatives to attend the AGM and all costs are borne by the company itself
- Can a shareholder exercise direct control on the assets and
liabilities of the company for which he/she is a shareholder?
No, a shareholder has no direct control over the company's assets and liabilities, Her/his
rights of "control" are limited to voting during general meetings to appoint directors
according to the Memorandum and Articles of Association (MEMART) which is the
constitution of the company, appointment of auditors, approving annual report and
approving proposals that require shareholders' approval according to the MEMART
Assets of the company are owned by the company, which is an independent legal entity
from the shareholders, Likewise, liabilities of the company limited by share capital are the
company's liabilities, and are independent from the shareholders,
- Can I use my shares as collateral?
Yes, financial institutions in Tanzania are increasingly accepting shares, particularly of listed
companies, as collateral for loans, The Central Depository System based process to
mortgage shares has proved beneficial to both lenders and borrowers as it is not time
consuming, it is transparent. no valuation costs are incurred and the chances for forgery
are very limited, Treasury bonds, Treasury bills and listed corporate bonds are equally
acceptable to most of lending institutions as collaterals,
- If something wrong happens to my shares, Can I be compensated?
No, risk moves with ownership, Share price can go up (which is good for you) and can
go down (which is not good for you), Such uncertainty (risk) is there from the day you
decide to invest in shares,
In case you loose your share certificate, the advice is to report it to the nearest police
station to obtain a police report to be submitted to the company secretary immediately.
- If I am not certain on what to do about investing in securities, or if
I want to report a suspicious transaction, where can I report?
The most suitable place for you to contact in case you want to know how to invest in
shares is to contact any DSE broker, DSE brokers will advise you and in case you decide
to invest they will execute a transaction on your behalf. Another alternative is to contact
investment advisors who are licensed by the CMSA Investment advisors who are not
brokers can only advise but cannot execute transactions,
The most appropriate place / office for you to report any suspicious transaction is CMSA
CMSA is charged with an overall responsibility of overseeing the market to ensure
transactions are done in an orderly manner, Also such transactions can be reported at
the DSE as the exchange is a self regulated organization that has a set of rules and a
disciplinary mechanism applicable to its members,
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- Can a company in which I have shares lend me against my shares?
No, normally listed companies do not have arrangements to lend to shareholders against
their shares. If you want cash two options are available. One is to approach a lending
institution and apply for a loan, in which case you will generally be able to use your shares
as collateral; or to sell your shares, in which case you should contact a DSE broker /
dealer.
- What does it takes to have my company shares listed at the Oar es
Salaam Stock Exchange?
This process requires professional guidance. CMSA and DSE regulations require any
issuer to appoint a broker to sponsor any new issue or listing. The sponsoring broker will
assist you on the requirements depending on several factors like are company shares
already in public hands like CRDB Bank Ltd, NICO, Dar es Salaam Community Bank,
TCClA Investment Company Ltd or new issue; is listing anticipated on the Main
Investments Market Segment (MIMS) or Entrepreneurship Growth Market (EGM), etc.
The best approach to get detailed information is to contact a Licensed Dealing Member
of the DSE.
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