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Definition

The percentage of a listed company's shares that must be held by members of the public. Section 4.28 (e) of the JSE's listing requirements states that a company listed on the main board of the JSE "...must have 20% of each class of equity securities held by the public to ensure reasonable liquidity." Then section 3.37 says that issuers of shares must "...use their best endeavours to ensure that a minimum percentage of each class of securities is held by the public as described in paragraph 4.28(e)." And section 3.43 says: "An issuer must disclose in its annual financial statements the following concerning its securities held by the public (as defined in paragraphs 4.25 to 4.27): (a) the number of public securities holders for every class of listed securities; (b) the percentages of each class of securities held by public and non-public shareholders; and (c) the disclosure for non-public shareholders must be analysed in accordance with the categories set out in paragraphs 4.25 to 4.27." Finally, paragraph 4.25 says that public shareholders exclude: (a) the directors of the applicant or of any of its major subsidiaries; (b) the trustees of any employees’ share scheme or pension fund established for the benefit of any directors or employees of the applicant or any of its subsidiaries; (c) any person that is interested in 10% or more of the securities of the relevant class, (d) employees of the issuer, where restrictions on trading in the issuer’s listed securities, in any manner or form, are imposed by the issuer on such employees.

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