5876482
Description
Mind Map by Lester Stoffels, updated more than 1 year ago
|
Created by Lester Stoffels
over 8 years ago
|
|
Close Corporation
- Characteristics
- Suitable for small businesses
- 1-10 members
- Name must be registered
and end with cc
- Founding statement
must be completed
- Each member has
in interest in cc
- The cc is a legal entity and
can enter into contracts
- Continuity of existence
- Is a legal person and pay tax
- Dividends is exempt from tax
- Suitable for small businesses
- Disadvantages
- Capital is restricted to what
10 members can contribute
- Liability status can be lost
Annotations:
- if members are in violation of their fiduciary duty for example omitting the letters cc when signing a contract.
- Consent of fellow members is required
Annotations:
- when selling an interest in a cc
- CC can only be sold to a natural person
Annotations:
- and therefore not to another cc or company
- Must appoint an accounting officer
- Capital is restricted to what
10 members can contribute
- Advantages
- Easy and inexpensive to establish
- CC is a legal person therefore
responsible for its own assets
- Members have limited
liability for the debts
- An indefinite lifespan
Annotations:
- means that members can change without affecting the continuity of the cc
- Members are allowed to
participate in management
of business
- Easy and inexpensive to establish
Want to create your own Mind Maps for free with GoConqr? Learn more.