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Close Corporations and derivative actions

Photo of Donald Dinnie
By Donald Dinnie on February 25, 2022

This Supreme Court of Appeal judgment confirms that the common law derivative action is available to members of close corporations.

The common law derivative action was abolished in section 165(1) of the Companies Act and replaced with a statutory derivative action for companies.

Sections 49 and 50 of the Close Corporation Act do not exclude…

Posted in General

Remember to issue shares when converting a CC to a private company

Photo of Raphael Chitambira
By Raphael Chitambira on May 5, 2020

Since the passing of the Companies Act 2008 in May 2011 it is no longer possible to register a close corporation (CC). However, the Companies Act allows a CC that existed prior to 1 May 2011 to continue to exist or to convert to a private company.

Business owners often opt to convert their CCs…

Posted in General

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Norton Rose Fulbright’s financial institutions team provides straightforward legal updates. Our lawyers offer local insights with an international perspective recognised worldwide. This blog focuses on the South African market and is about sharing knowledge with you. Blog posts are not legal advice.

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