TITLE: The future of Close Corporations
COPY:
Pretoria, Thursday, 10 March 2011 - Registration of Close Corporations (CC) will
cease under the new Companies Act which comes into effect on 1 April 2011;
however currently registered Close Corporations will still be maintained.
The new Companies Act provides for the continued existence of currently registered Close
Corporations (CC), but negates any further registrations of new CCs. All existing CCs
registered with the Companies and Intellectual Property Registration Office (CIPRO) as of
the effective date of the new Act (1 April) will continue to exist, and all amendments to CCs
will be accommodated by the new Companies Intellectual Property Commission (CIPC)
which is scheduled to be implemented at the same time that the act is put into effect.
Conversion to private company
The new Act does not force Close Corporations to convert into companies, however due to
simplified legislation, reduction of regulatory burden, and simplicity of formation - this is
encouraged. The Private Company will replace the CC as the preferred vehicle for small
and medium businesses under the new Act.
The Companies and Intellectual Property Commission
As provided for in the New Companies Act 71 of 2008, CIPRO and the Office of
Companies and Intellectual Property Enforcement (OCIPE) will join to form a Commission
on the 1st of April 2011. The Commission will be known as the Companies and Intellectual
Property Commission (CIPC).
The Commission will perform the following functions: Registration of Companies, Cooperatives
and Intellectual Property rights, public education and awareness, enforcement,
research, legal advisory services and stakeholder management.
Categories of companies
The new Companies Act provides for two categories of companies:
· Non profit companies - which are the successor to Companies limited by guarantee
and section 21 companies; and
· For profit companies -
– private companies;
– public companies;
– personal liability companies;


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– state-owned companies.
For more information, customers can visit the CIPRO website on www.cipro.gov.za, the dti
website on www.thedti.gov.za or call the Call Centre on 0861 843 384.
Contact:
Dr Elsabé Conradie
CIPRO
T: (012) 394 5467
Email: econradie@cipro.gov.za
www.cipro.gov.za