Companies Act Notes: Understanding Different Types of Companies According to Section 8, Schemes and Mind Maps of Corporate Governence

Download Companies Act Notes: Understanding Different Types of Companies According to Section 8 and more Schemes and Mind Maps Corporate Governence in PDF only on Docsity!

COMPANIES ACT NOTES SUMMARY: Section 8

INDEX

COMPANIES ACT 71 OF 2008

1) SECTIONS

Section 8

Companies Act 71 of 2008

1. Sections a. Section 8 : Categories of companies i. Two types of Companies ➢ Profit Companie s What is a profit company? A company incorporated for the purpose to make money and to pay dividends to its SHs Types of profit companies 1. Public company – Its not state owned,not private or a personal liability company. “Limited or Ltd” 2. Private company - MOI doesn’t allow it to offer any of its securities(shares) to the public and stops the transferability of its securities. “Proprietary Limited or (Pty)Ltd” 3. Personal liability company - It meets the definition of private company and MOI states that it’s a personal liability company. “Incorporated or Inc“ 4. State owned company – Owned by municipal and meets definition of state owned enterprise i.t.o Public Finance Management Act. “SOC Ltd” ➢ Non-Profit Companies What is a non-profit company? A company incorporated for the benefit of the public or other objective. “NPC” ii. Companies are not recognized if : 1. All shares are held by related persons 2. All directors are SHs Key words Co Act= Companies Act S & L= Solvency & Liquidity SHs = Shareholders MOI= Memorandum of incorporation