Companies Act No 71 of 2008 and Business Forms Vocabulary

Vocabulary flashcards detailing partnership concepts, types of profit and non-profit companies, incorporation requirements, and voting resolution standards under the Companies Act No 71 of 2008.

Joint and Several Liability (Partnership)

A legal condition where partners are collectively and individually responsible for all debts of the business, possessing unlimited liability for all partnership debts.

Progressive Tax

A tax structure applied to a partner's personal income where a higher profit results in a higher percentage tax rate, up to a maximum of $45\%$.

Companies Act No 71 of 2008

South African legislation designed to promote business efficiency and corporate governance transparency, ensuring legal alignment with international best practices.

Non-Profit Companies (NPC)

Companies registered for cultural, social, or communal interests that require $3$ or more incorporators, cannot distribute income/property to members or directors, and cannot convert or merge with profit companies.

State-Owned Companies (SOC)

Profit companies registered under the Companies Act that are owned by the Government or a Municipality.

Private Companies [(Pty) Ltd]

Profit companies with unlimited ownership capacity that restrict the transferability of their shares.

Public Companies (Ltd)

Profit companies that require only $1$ shareholder and whose shares are freely negotiable on the JSE Ltd.

Personal Liability Companies (Inc. or Incorporated)

Profit companies whose directors are jointly and severally liable alongside the company for all debts incurred during their specific period in office.

Ring Fenced Companies (RF)

Companies established under special conditions to fulfill a specific function only, requiring 'RF' to appear directly after the company name.

CIPC

Companies and Intellectual Property Commission; the regulatory body with which the Notice to Incorporate and Memorandum of Incorporation (MOI) are lodged.

Notice to Incorporate

A formal notice given to the Commission by incorporators declaring their intent to register a company.

Memorandum of Incorporation (MOI)

A detailed legal document setting out the rights, duties, and responsibilities of shareholders, directors, and officers, replacing the former Memorandum and Articles of Association.

Alterable Provisions

Rules within the Companies Act 2008 (totaling $53$ rules) that can be modified or changed within a company's MOI to fit its specific needs.

Ordinary Resolution

A resolution that, according to the Act, must be approved by more than $50\%$ of the share voting rights.

Special Resolution

A resolution that must be approved by at least $75\%$ of the shareholders voting on the resolution.

JSE Ltd

The South African Stock Exchange where shares of public companies are freely negotiable.