What does the Companies Act 71 of 2008 require?
The Companies Act 71 of 2008 aims: to provide for the incorporation, registration, organisation and management of companies, the capitalisation of profit companies, and the registration of offices of foreign companies carrying on business within the Republic; to repeal the Companies Act, 1973 (Act No.
What are two main types of companies according to the Companies Act 2008?
The Companies Act, 2008 provides for two categories of companies, namely non-profit and profit companies. Non-profit companies take the place of companies limited by guarantee and section 21 companies. Non-profit companies are characterised by the following: They are incorporated for a “public benefit purpose”.
Which form of ownership are businesses no longer allowed to register according to the Companies Act of 2008?
Close Corporations (CCs)
Close Corporations (CCs), a simplified, cheap form of company that was designed especially for small-business owners, can no longer be registered, although existing CCs can still run as such indefinitely.
Did the Companies Act 71 of 2008 abolished the doctrine of constructive notice?
The Companies Act 71 of 2008 (the Act) has, however, changed the playing field in this regard. The doctrine of Constructive Notice has been abolished, and the application of the Turquand rule has been codified in Section 20(7) and Section 20(8) of the Act.
What is the purpose of the companies Act 71 of 2008?
The purpose of this Act is to: Promote compliance with the Bill of Rights as provided for in the Constitution in the application of company law. Promote the development of the South African economy by: encouraging entrepreneurship and enterprise efficiency.
Which companies must be audited in South Africa?
All public and state-owned companies are thus required to be audited. Any other company whose public interest score in that financial year is at least 100 (but less than 350) and whose annual financial statements for that year were internally compiled.
When did the new Companies Act 71 of 2008 come to effect?
1 May 2011
71 of 2008 was signed by the President on 8 April 2009 and gazetted in Gazette No. 32121 (Notice No. 421). The Act replaces the Companies Act, 61 of 1973 and came into effect on 1 May 2011.
What are the different types of companies under Companies Act?
Types of Companies
- Companies Limited by Shares.
- Companies Limited by Guarantee.
- Unlimited Companies.
- One Person Companies (OPC)
- Private Companies.
- Public Companies.
- Holding and Subsidiary Companies.
- Associate Companies.
When did the new companies Act 71 of 2008 come to effect?
Can 1 Director bind a company?
Where a company has more than one director, a single director alone does not have the authority to bind the company without the resolution of the entire board. Section 126 of the Act separately requires that contracts can be signed by an individual with the company’s express or implied authority.
What are the benefits of a Pty Ltd company?
As a Pty Ltd Company is a separate legal entity, it will be liable for its own debts. This ensures that claims made against the company can only be paid using assets owned by the company. This gives a layer of protection for directors’ and shareholders’ personal assets.
What did Companies Act 71 of 2008 do?
Files: The Companies Act 71 of 2008 aims: to provide for the incorporation, registration, organisation and management of companies, the capitalisation of profit companies, and the registration of offices of foreign companies carrying on business within the Republic;
What are the powers of shareholders under the Companies Act of 2008?
The Companies Act, 71 of 2008 (“Act”) gives shareholders certain substantive powers which include, among others, the power to amend the Memorandum of Incorporation of the company (“MOI”), the power to elect and remove directors, and the power to approve the disposal of all or the greater part of the company’s assets.
When did the Companies Act come into effect in South Africa?
Introduction. The Companies Act, No. 71 of 2008 (the Act) significantly changes the landscape of company law in South Africa. The Act was signed by the President on 8 April 2009, but implementation was deferred to accommodate necessary amendments.
What are the features of the Companies Act?
8 THE COMPANIES ACT, NO. The main features of the Companies Act, 2008 are as follows: • It has been modernised and brought into line with international best practices. This applies in particular to public companies, communications and corporate governance.