When the new Companies Act of 2008 was finally implemented a year later, we could no longer form Close Corporations. But should you convert? The main reason that CCs fell away was that owner managed companies (and a CC is owner managed) became so similar to CCs that the latter became redundant. The prinicipal changes were that an owner managed company: 1) Did not need an audit or an auditor 2) Did not need a company secretary 3) Did not need to draft formal financial statements. Contrast these with a CC which: 1) Does not need an audit, but must…
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