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What is a Shelf Company or CC? Comparison between Company and CC
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Comparison between a Company and a Close Corporation

Close Corporation

  • Juristic person
  • Enjoys perpetual succession
  • Can have a maximum of 10 members
  • Companies cannot hold a member's interest
  • Comprise of members
  • Has a founding statement
  • Articles of association are not required
  • Has member's contributions
  • Has an accounting officer
  • Annual general meeting not required
  • Certificate of incorporation
  • Members hold member's interest
  • Can purchase a members interest
  • Members are responsible for the day to day management of the CC
  • No register of members
  • Limited liability
  • Financial statements
  • No prohibition on a CC to provide financial assistance for the acquisition of a member's interest
  • Since January 2006 an inter vivos trust can be member of a CC

Company

  • Juristic person
  • Enjoys perpetual succession
  • Companies can be share holders
  • Comprise of directors and shareholders
  • Has a memorandum
  • Registered articles of association
  • Has a share capital
  • Convenes an annual general meeting
  • Certificate of incorporation
  • Members hold shares
  • Can acquire its own shares under certain circumstances
  • Directors are responsible for the day to day management of the company
  • Register of members
  • Limited liability
  • Audited financial statements
  • Prohibition on a company to provide financial assistance for the acquisition of its own shares
  • A private company can have up to 50 shareholders
  • A public company can have an unlimited number of shareholders