The Companies Act have certain requirements in place to ensure Companies trades in their shares in a legal manner. Whether it is the sale of new shares, or the transfer of shares from one shareholder to another, these rules must be observed to ensure the transaction is valid. From an audit perspective, if these transactions were not performed in compliance with the requirements, it will lead t a misstatement. Therefore these transactions must be audited in such a way to ensure validity under the legislation. This session aims to bring together the legislative requirements as well as the practical audit requirements and discuss the procedures to be performed to ensure validity. An example working paper will also be discussed.