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18 Cards in this Set
- Front
- Back
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Profit companies(2) |
Incorporated for financial gain MOI describes how it operates |
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Non profit companies |
Work for no profit |
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Close corporation |
Cannot be created anymore |
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Company(5) |
Legal person Has rights and duties separate from shareholders Assets belong to company May enter contracts Can be sued |
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Companies have(2) |
Limited liability Perpetual succession |
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Perpetual succession |
If shareholders change company does not die |
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Lifting of corporate veil |
When fraudulent activities take place shareholders and directors not held liable |
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Different types of profit companies(4) |
Private company Public company Personal liability company State owned company |
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Private companies(3) |
Pty LTD at end of name Cannot advertise shares, by special invitation or through intermediary Memorandum restricts transfer of shares like right of pre-emption |
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Pty ltd |
Proprietary limited |
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Personal liability company(2) |
Directors are jointly and severally liable for company debts and liabilities Incorporated entity |
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State-owned company(2) |
Owned by government Shares freely transferable and can be advertised |
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Legal requirements for formation of company(5) |
Reserve the name Submit MOI with notice of incorporation to CIPC CIPC assign unique registration number When formalities complete Registration certificate issued Date of incorporation when company is a separate legal entity |
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CIPC |
Companies and intellectual property commission |
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Shareholders rights (4) |
Right to share in net assets Right to receive share of profits - dividends Right to choose board of directors Right to sell shares |
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Fiduciary duty |
Directors must act in a way that benefits shareholders |
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Duty of reasonable care |
Directors must be diligent when carrying out duties |
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Corporate citizen(7) |
Discipline Transparency Independence Accountability Responsible management Fairness Social issue |
