100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Summary Financial Accounting 178 (Chapters 9-11) -> all remaining work in exam $3.41   Add to cart

Summary

Summary Financial Accounting 178 (Chapters 9-11) -> all remaining work in exam

 395 views  4 purchases
  • Course
  • Institution

Close Corporations, Liquidations and Partnerships. (NB- these will be tested thoroughly in final exam) For a full set of free past papers (after you have purchased this document) and possible tutoring, contact me on @sun.ac.za

Preview 1 out of 31  pages

  • November 26, 2018
  • 31
  • 2018/2019
  • Summary
avatar-seller
9. Close Corporations
A CC is formed when a founding statement (CK1 form) is registered with the Registrar of Close
Corporations and a certificate of incorporation is issued. A registration number is allocated by
the Registrar to the CC at formation and the Registrar approves the following items:
 Name of the CC
 Registered address
 Accounting officer, his occupation and address
 Main business of the CC
 % interest of each member
 Descriptions of each of the member’s contributions
 Names and addresses of the members
 Financial year-end of the CC

After 1 May 2011 existing CC’s have the option to continue as a CC, or to convert into a
company.

Characteristics:

 A CC is a separate legal person.
 A CC continues to exist even if members change.
 Members of a CC have limited liability (restricted to capital contributions).
 A minimum of 1 and maximum of 10 natural persons can be members of a CC.
In terms of the CC Act, a CC can purchase a member’s interest or provide monetary assistance
to any person to obtain member’s interest

Members:
Members are restricted to the following:
 natural persons or testamentary trusts
 a trustee of a testamentary trust who is a natural person or legal entity, but who is not
a beneficiary of a trust and who does not control a beneficiary of a trust
 a natural person or legal entity who acts on behalf of a member who is insolvent, has
died, is mentally disturbed or otherwise unqualified.

Every member has a fiduciary duty towards the corporation. The relationship between
members is regulated by the CC Act. Members should also enter into a written association
agreement in order to arrange the internal relations. The association agreement should
stipulate the following:

 Duties of each member with regard to the management of the CC.
 How disputes should be settled.
 Remuneration of each member.
 Distribution of profits to members.
 How changes in members’ contributions should be treated.
 Powers to enter into loan agreements, etc.

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller ChloeMitchell. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $3.41. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

73918 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling

Recently viewed by you


$3.41  4x  sold
  • (0)
  Add to cart