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A juristic person may not be a member of a close corporation (e.g. a company or
another close corporation) However,
now it is possible, in certain circumstances, that an inter vivos trust
can (through its trustees) be a member of a close corporation (Section 29 of the
Act. Read this PDF
document)
A
close corporation comes into existence when the Registrar of Close Corporations
registers the founding statement (form CK1)
A close corporation is juristic person and has the powers of a natural person to
the extent that a juristic person may have such powers (viz. a close corporation
cannot make a will)
All members may participate in the management of a close corporation. There is
no separation between ownership and management. This may be changed by an
association agreement entered into between the members and the close corporation
A close corporation does not require an auditor, only an accounting officer.
A close corporation provides limited liability to its members. A member cannot
be held liable, under normal circumstances, for the debts of a close
corporation. There are certain exceptions provided for in the Act (see sections
26(5), 63 and 64(1)).
There are no directors in a close corporation, only members.
The interest that a member has in a close corporation is expressed as a
percentage.
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