Private Company vs Close Corporation

September 15, 2017

Private Company	Close Corporation
Juristic Person	Juristic Person
Enjoys Perpetual Succession	Enjoys Perpetual Succession
No maximum shareholding	Can have a maximum of 10 members
Companies can be shareholders	Companies cannot hold member’s interest
Comprised of directors and shareholders	Comprised of members
Has s Memorandum of Incorporation	Has a Founding Statement (CK1)
May have a shareholder’s agreement	May have a member’s agreement
Has shares and shareholders	Has members and member’s contributions
Annual Financial Statements required	Annual Financial Statements required
May require Audit in certain cases	May require Audit in certain cases
May convene an Annual General Meeting	May convene an Annual General Meeting
Certificate of Incorporation	Founding Statement / Amended Founding Statement
Can acquire its own shares under certain circumstances	Can transfer member’s interest
Share certificates and share register	Member certificates
Annual Duty due to CIPC	Annual Duty due to CIPC
Directors are responsible for the day to day management of the Company	Members are responsible for the day to day management of the CC
Limited Liability	Limited Liability
Prohibition on a Company to provide financial assistance for the acquisition of its own shares	No prohibition on a CC to provide financial assistance for the acquisition of its own member’s interest

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