The Companies Act

Question 1

What will the company act promote?

Answer 1

Efficiency of companies are management by encouraging transparency and high standards of corporate governance

Question 2

What will the act insure?

Answer 2

Legislation governing companies in South Africa is more compatible and harmonise with the best practices

Question 3

Why can’t know new close corporations be registered?

Answer 3

The intention is to phase out close corporations

Question 4

Why was the close corporations act amended?

Answer 4

To bring the act in line with the companies

Question 5

What do you close corporations wishing to convert to a company need to file?

Answer 5

File a notice of conversion and complete specify document of the paying a filing fee

Question 6

What are the two types of companies?

Answer 6

Nonprofit companies and profit companies

Question 7

What is a non-profit company?

Answer 7

A company registered with the objective that it is related to cultural or social activities, communal or group interest

Question 8

What must a non-profit company not distribute?

Answer 8

Income or property to any member or director

Question 9

What can’t a non-profit company convert to you?

Answer 9

A proper company as it is misleading to the public

Question 10

Name the four types of proper companies

Answer 10

1. State owned companies
2. Private companies
3. Public companies
4. Personal liability companies 

Question 11

State owned companies

Answer 11

SOC

Question 12

What are state owned companies?

Answer 12

Registered in terms of the companies act and our government or municipality owned

Question 13

Private companies

Answer 13

[(Pty) Ltd]

Question 14

What a private companies?

Answer 14

No longer limited to 50 shareholders. Ownership is unlimited. Restrict transfer ability of shares 

Question 15

Public companies

Answer 15

[Ltd]

Question 16

What is a public company?

Answer 16

Requires only one shareholder with a minimum amount of seven shareholders when needed

Question 17

Personal liability companies

Answer 17

[Inc or Incorporated]

Question 18

What are personal liability companies?

Answer 18

Directors are jointly and severally liable with the company for all the debts

Question 19

What a company is called that are established under specific conditions?

Answer 19

Ring fenced companies (RF)

Question 20

Why are ring fence companies established?

Answer 20

To provide a specific function

Question 21

What is the formation of a company under the companies act?

Answer 21

• One or more persons may incorporate as a profit company – non-profit company three or more
• Done we notice to incorporate and memorandum of incorporation has been filed at the companies and intellectual property commission
• Notice to incorporate is done by notice given to the commission from the Inc where the commission of the intent to the company registered 

Question 22

What does CIPC stand for?

Answer 22

Companies and intellectual property commission

Question 23

What does MOI stand for?

Answer 23

Memorandum of incorporation

Question 24

What is the memorandum of incorporation?

Answer 24

Detailed document providing all the information that the memorandum and articles of association did

Question 25

What did the memorandum of incorporation said out?

Answer 25

Rights, duties and responsibilities of all shareholders, directors and any other relevant offices 

Question 26

How many rules does the memorandum of incorporation have which could be out to see if the company?

Answer 26

53 rules

Question 27

In terms of special conditions what does the memorandum of incorporation have?

Answer 27

Contain special conditions relating to the company and will state the requirements for the amendment

Question 28

What would be issued once the commission Is happy? 

Answer 28

A registration certificate – for food or requirements

Question 29

What does the companies act places special emphasis on?

Answer 29

Transparency, Accountability and integrity of companies

Question 30

What are the two duties are prescribed officers have?

Answer 30

• Fiduciary duty
• Duty to act with care and skill