RE: GENERAL UPDATE ON SHAREHOLDER MATTERS
In our meeting with the Financial Services Board (FSB) on the 5th September 2014, we were advised by them that we were not authorized to sell “shares” in terms of the Financial Advisory and Intermediary Services Act 37 of 2002 (FAIS Act). We have already stopped selling shares prior to this advice.
After consulting with the relevant parties, and with the advice of our senior council and attorneys, our current mandate is to dispose of the properties, by way of auction or private sale, and refund the shareholder investments. We have already approached AUCOR for the auction of a number of properties.
OWNERSHIP OF SYNDICATES:
For each syndicate, a separate company was formed, owning one or more properties. The ownership of the companies are directly vested in the shareholder/s of the each syndicate company. DMC acted as a management/administration entity to the syndicated companies.
Shareholders have the right at their discretion to appoint new a director/s from the shareholders of each respective company, or new management agents if they so wish to continue managing the companies. If so, we will gladly assist and liaise with any new parties to assist in this regard.
Over the past few weeks various different rumours may have surfaced which may have caused panic. Shareholders need to understand that their capital is invested directly in fixed immovable property.
The properties will have a reserve price on auction, and depending on the offers submitted, shareholders will ultimately decide whether or not to dispose of the properties. We will communicate with shareholders after auction to discuss offers, if any. The auction is set to take place on the 17th of October 2014.
Where an offer is received and accepted in a syndicate where there is more than one property, shareholders will be paid pro-rata portions of their capital.
Up until the properties are sold, shareholders will continue to receive dividends based on the income less the monthly expenses.
We thank shareholders for their unwavering support and loyalty, and request for patience and duas for the best possible solution for the way forward.
For queries, please email@example.com or call 018 462 9477.