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    UNIT 1 Types of Companies

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    Pitso Mokautu
    This document outlines different types of companies in South Africa. It describes profit companies like public limited companies, private companies, and state owned companies. It notes key differences like ownership structure and whether shares can be publicly offered. The document also covers not-for-profit companies and personal liability companies. The non-profit company section emphasizes that it must be formed for social/cultural purposes rather than profit and that assets cannot be distributed to members upon dissolution.

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    UNIT 1 Types of Companies

    Uploaded by

    Pitso Mokautu
    10 views1 page
    This document outlines different types of companies in South Africa. It describes profit companies like public limited companies, private companies, and state owned companies. It notes key differences like ownership structure and whether shares can be publicly offered. The document also covers not-for-profit companies and personal liability companies. The non-profit company section emphasizes that it must be formed for social/cultural purposes rather than profit and that assets cannot be distributed to members upon dissolution.

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    This document outlines different types of companies in South Africa. It describes profit companies like public limited companies, private companies, and state owned companies. It notes key differences like ownership structure and whether shares can be publicly offered. The document also covers not-for-profit companies and personal liability companies. The non-profit company section emphasizes that it must be formed for social/cultural purposes rather than profit and that assets cannot be distributed to members upon dissolution.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    10 views1 page

    UNIT 1 Types of Companies

    Uploaded by

    Pitso Mokautu
    This document outlines different types of companies in South Africa. It describes profit companies like public limited companies, private companies, and state owned companies. It notes key differences like ownership structure and whether shares can be publicly offered. The document also covers not-for-profit companies and personal liability companies. The non-profit company section emphasizes that it must be formed for social/cultural purposes rather than profit and that assets cannot be distributed to members upon dissolution.

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    © All Rights Reserved
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    of 1

    UNIT 1 TYPES OF COMPANIES

    PROFIT COMPANIES
    Public Company - Ltd Private Company - Pty (Ltd)

     It must a suffix “Ltd” to its name.  It must have a suffix “Pty (Ltd)” to its name.
     It can be formed by 1 person but must have at  It can be formed by 1 person but must have at
    least 3 directors. least 1 director.
     Shares are freely transferrable  Ownership is limited to a small group of
     Shares may be offered to the public and listed individuals or entities.
    on the JSE.  The transferability of shares is restricted.
     The recognition of the company status is  Its Memorandum of Incorporation prohibits the
    sourced in the Memorandum of Incorporation. company from offering its shares to the public.

    State owned Company – Soc Ltd Personal Liability Company - Inc

     It must have suffix “Soc Ltd” to its name.  It must have suffix “Inc” to its name.
     It is owned by the South African government  It may be formed by 1 person and may have at
    or a local municipality. least 1 director.
     It is a juristic person under the ownership and  It must meet the criteria of a private company;
    control of the national executive. however, it is used by professional
     It falls within the meaning of public entity in associations. (Attorneys. Auditors, Engineers)
    terms of the Public Finance Management Act.  Its shares may not be offered to the public.
     Its directors are jointly and severally liable for
    debts and liabilities contracted during their
    term of office.

    NOT PROFIT COMPANIES


    Non-Profit Company – NPO
     It must have suffix “NPC” to its name.
     It is a company that is formed with the aim of not making profit for its member.
     Its activities must be related to social or cultural activities, public benefits, or group interests.
     It must be formed by at least 3 people, who will be the company’s first directors.
     It must have at least 3 directors at all times.
     A person appointed as a director of a non-profit company cannot receive any financial benefits
    except for remuneration for work done.
     When the company is dissolved, no director or member of that company is entitled to any part of
    the net value of the company.
     The proceeds or assets of the company are to be transferred to another NPC.

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