Chapter 1 Flashcards
What is a business entity?
A business entity is an organization created by one or more natural persons to carry on a trade or business.
When did the Companies Act 71, of 2008 commence?
1 May 2011
What is the purpose of the Companies Act, 2008?
To encourage business activity and entrepreneurship by providing a flexible regulatory environment that eases the regulatory burdens on those who wish to take advantage of incorporation.
What are 3 Companies Acts to exist in SA?
The Companies Act 46 of 1926
The Companies Act 61 of 1973
The Companies Act 71 of 2008
What does the traditional shareholder-oriented model (classic model) state?
Only the interests of shareholders are considered as the focus of corporate activity
What does the enlightened shareholder value approach state?
Directors take into account the interests of other stareholders for the promotion of interests of other shareholders.
What does pluralist approach state?
The interest of all stakeholders are taken into consideration.
What is the Memorandum of Incorporation (MOI)?
The founding document of a company in terms of the Companies Act, 2008.
