shareholders Archives

(Pty) Ltd companies must have at least one director, and he/she has to be appointed when the company is formed. Interestingly, however, a (Pty) Ltd company does not have to have any shareholders. It is formed with an authorised capital, usually of 1000 shares. That is capital (shares) that the director(s) are authorised, but not obliged, to issue. This is an advantage for us when we form a new trust and a new company that is to be owned by the trust. We can form the company, usually within about 1 week. The director…

We form hundreds of companies for clients with the result that, because meetings with me are free, I get to talk to hundreds of entrepreneurs. It is quite clear that many of them do not understand the distinction between a company’s promoters, shareholders, directors and employees, so here’s a guide. Now, I’m not going to get technical, so if you’re studying for an exam, go to the Companies Act for the full story. I just want to offer a simple explanation that everyone can understand. The Promoter(s) form a new company at CIPC by choosing a name…

Many people form a company and start a business without knowing what this really entails. So, here are the basics in FAQ format – What is a company? It is a legal entity (person, if you like) which is separate from those who own it and those who run it. Who owns a company? People, other companies, trusts or other legal entities buy shares in a company and the more shares they own the bigger their “shareholding” in the company. Who runs it? It is the Directors who run the company, not the shareholders. How does one get to be…

shareholders

How many directors and shareholders?

Promoters, shareholders, directors and employees

Company basics