Private Company vs Close Corporation

Lorette Terry
 September 15, 2017
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General


Private CompanyClose Corporation
Juristic PersonJuristic Person
Enjoys Perpetual SuccessionEnjoys Perpetual Succession
No maximum shareholdingCan have a maximum of 10 members
Companies can be shareholdersCompanies cannot hold member’s interest
Comprised of directors and shareholdersComprised of members
Has s Memorandum of IncorporationHas a Founding Statement (CK1)
May have a shareholder’s agreementMay have a member’s agreement
Has shares and shareholdersHas members and member’s contributions
Annual Financial Statements requiredAnnual Financial Statements required
May require Audit in certain casesMay require Audit in certain cases
May convene an Annual General MeetingMay convene an Annual General Meeting
Certificate of IncorporationFounding Statement / Amended Founding Statement
Can acquire its own shares under certain circumstances
Can transfer member’s interest
Share certificates and share registerMember certificates
Annual Duty due to CIPCAnnual Duty due to CIPC
Directors are responsible for the day to day management of the CompanyMembers are responsible for the day to day management of the CC
Limited LiabilityLimited Liability
Prohibition on a Company to provide financial assistance for the acquisition of its own sharesNo prohibition on a CC to provide financial assistance for the acquisition of its own member’s interest

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