It is a well-established principle that a company is a separate juristic person, distinct from its shareholders and directors. This is significant, because it implies ‘limited liability’ – the shareholders will not be held liable for the debts incurred by the company. Only in exceptional circumstances will the courts impose liability on shareholders for the …
Shareholders in a private company are not normally liable for the debts of the company, but there are instances where they may be, upon deregistration or liquidation of the company. Deregistration In terms of section 82 of the Companies Act No. 71 of 2008 (“the Companies Act”), the grounds for deregistration of a company by …
Shareholder liability for debts of a company by Alden Klaasen Read More »
Section 71 of the Companies Act (“the Act”) provides two options for removing a director. First, by an ordinary resolution adopted by the shareholders of the company; and second, by a resolution of board members, other than the director concerned. If shareholders want to remove a director (the first option), must the director be informed …
Should reasons be given when shareholders remove a director? Read More »
The Companies Act, No. 71 of 2008 (“the New Act”) allows that shares in a company may be held by a nominee on behalf of a beneficial owner. A nominee essentially acts as an agent for the true owner of the shares, but the nominee is registered as owner of those shares. There are various …