Tag archives: Close corporation

Close Corporations and derivative actions

By Donald Dinnie on February 25, 2022 Posted in General

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 … Continue reading

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

By Raphael Chitambira on May 5, 2020 Posted in General

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 … Continue reading