Question:
My parents are pensioners who each hold a small number (200 and 500) of Iscor shares.

Computershare is saying that according to Iscor policy you must hold at least 1000 shares and that they cannot assist on any other basis. My parents have been informed that they will only get R2.10 per share.

I advised my parents not to sign the forms on that basis. I think the less privileged are being prejudiced.

Please advise what action or steps should be taken to rectify this matter.

Answer:
Your parents did not exercise any of the options offered, so they received a cash payment of R2.10.

Many people make the mistake of buying shares and then pretty much forget about them, sometimes for many years. If you move and do not inform the authorities of a change of address then you will miss out on important announcements. Like all investments it is important to keep tabs on the shares you own and to make sure that the investment company has updated records.

I contacted Computershare for an explanation and this was their response:

We refer to your email below and advise that the above company had an odd-lot offer to shareholders who held in aggregate fewer than 1000 shares at the close of business on 26 November 1999.

Shareholders could elect the following options:

  • Option A: Sell their odd-lot holdings at the offer price.

  • Option B: Purchase sufficient additional shares at the offer price to increase their odd-lot holdings to 1000 shares.

  • Option C: Retain their odd-lot holdings.

    Shareholders who did not elect any of the above options received a cash payment of R2.10 cents per share upon surrender of the original share certificate. Circulars were mailed to all shareholders in 1999 to advise them of the scheme.

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