Incorporation

Dr Y Basson
The process of incorporation

 People wanting to incorporate a company must have the following:

 A notice of incorporation
 A copy of the proposed Memorandum of Incorporation
 The prescribed fee
Notice of incorporation

 This document gives certain basic information about the proposed company
 The type of company they want to incorporate (private, public etc)
 The date of incorporation (the date the company comes into existence)
 When the financial year end of the company will be
 What the registered address of the company will be
 The number of directors the company will have
 The proposed name of company
Memorandum of incorporation (MOI)

 The MOI contains all the relevant information about the company and how it
will be run, including
 The powers of company
 Provision for how the amendment of MOI can be done
 Who can make rules relating to company
 How many and what types of shares the company will have (classes, share capital)
 Information about shareholders’ rights and duties
 Information about the Board of Directors (how many directors, powers and duties
of directors etc)
Legal status of the MOI

 Section 15(6) of the Companies Act creates number of legal relationships

through the MOI
 Company and shareholder
 Shareholders
 Company and directors
 Company and member of committee or board