Seabata Mahao
In a bid to educate the public about the intricacies of shareholding, the E-Legal Solutions Inc in collaboration with CGT and Associates Chartered Accountants recently held a one-day workshop.
Dubbed “Shares 101”, the workshop, held at the American Corner in the State Library, was designed to provide a comprehensive understanding of shares, their valuation, and the impact of these factors on company valuation, investment attraction, and the sale of shares.
This initiative is part of E-Legal Solutions Inc’s ongoing efforts, which began in 2017, to provide legal education to small businesses in Lesotho. The workshop marked the first event of 2024 focused on demystifying the concept of shares within a company.
Thapelo Donald Ntsiki, Managing Director of E-Legal Solutions Inc, explained the workshop’s objectives in an exclusive interview.
“We aimed to shed light on issues surrounding shares, including their implications within a company, the valuation of both companies and shares, and how these valuations affect returns on investment for shareholders,” Ntsiki said.
The workshop featured a presentation by renowned Chartered Accountant Sesinyi Rakubutu, who addressed the financial aspects of shares, while Ntsiki focused on the regulatory and legal aspects.
Ntsiki highlighted the positive feedback received from participants, particularly business owners who acknowledged their limited knowledge of shareholding prior to the workshop.
“Participants realised they had made mistakes when registering their companies, especially when allocating shares without understanding their value or the legal implications,” Ntsiki noted.
He also emphasised the importance of investors conducting due diligence before acquiring shares, including requesting financial information and assessing a company’s governance and operational structures.
“Our goal was to make the public aware of the critical factors to consider before investing in a company,” Ntsiki added.
The workshop also addressed the topic of dividends, with Ntsiki clarifying that earning dividends is not an automatic right but depends on the company’s profitability and the directors’ discretion.
“We educated our participants on the importance of a dividends policy, which guides investors on when and how they will receive their dividends,” he said.
E-Legal Solutions Inc’s “Molao le Khoebo” initiative, which means “Law and Business,” was also discussed. This social initiative was created to bridge the knowledge gap between legal matters and business stakeholders, offering free legal education to the public.
“I started this initiative after realizing that many business owners lacked legal knowledge, which is crucial for their success,” Ntsiki explained.
Ntsiki expressed hope that these workshops would not only educate the public but also influence policy changes and legal developments in Lesotho.
“Even though our laws are outdated, we hope our efforts will contribute to the development of our legal framework and improve how we conduct business in Lesotho,” Ntsiki added.
The “Shares 101” workshop was supported by several partners, including the United States Embassy, Divine Range Products, Thizo Sounds, and Blue Print Ink among others.
