What is the Companies Act 71 of 2008?
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 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.
What is entailed in Section 21 of the Companies Act 71 of 2008?
‘ With Section 21 of the Companies Act (2008), the previous requirement (of the Companies Act 61 of 1973) that the Memorandum of Association contain as one of its objects that the specific contract be ratified / adopted, and also that the contract be registered with the Registrar, have been abolished.
What are other categories of company that are provided for in the Companies Act 71 of 2008?
The Companies Act, 2008 provides for two categories of companies, namely non-profit and profit companies.
What type of company is Pty Ltd?
private company
A Pty Ltd is a private company that is trading for profit, a separate legal entity distinct from its shareholders. A private company (Pty) Ltd cannot offer its shares to the public, has fewer disclosure and transparency requirements and must compromise of at least one director.
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 is the difference between Pty Ltd and Pty Ltd?
Pty Ltd is a term used for most private companies which stands for ‘proprietary limited’. By contrast, Ltd stands for ‘Limited’. Company names often end with the term ‘Pty’ or ‘Pty Ltd’. This is because no matter what you decide to name your company, its legal name must include the status of its liability.
What is better a CC or Pty Ltd?
Many people chose a CC and still prefer a CC because a CC gave them the advantages of incorporation, with lower costs and simpler administration. Virtually all the advantages that a CC had, can now also be obtained by having a private company under the new Companies Act.
When did Companies Act 71 of 2008 start?
COMPANIES ACT 71 OF 2008 COMPANIES ACT 71 OF 2008 (English text signed by the President) [Assented To: 8 April 2009] [Commencement Date: to be proclaimed] as amended by: Companies Amendment Act 3 of 2011
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.
Is the Companies Act, No.12 still in effect?
THE COMPANIES ACT, NO. 12 THE COMPANIES ACT, NO. All existing close corporations will retain their current status until such time as their members decide that it is in their interest to convert to a company. Therefore, the Act provides for the indefinite continued existence of the Close Corporations Act.
Why was the Companies Act repealed in 1973?
The ultimate goal in repealing the Companies Act, No. 61 of 1973, was to ensure that the regulatory framework for enterprises of all types and sizes promoted growth, employment, innovation, stability, good governance, confidence and international competitiveness.