Companies...

What is a Company?

A company is a legal person which has capacity and powers to act on its own (i.e. the law sees a company in the same light as a natural person).

It is created by the Companies Act 61 of 1973, as amended, which is the machinery that enables the company to be formed for lawfull purposes.

There are generally 5 types of companies:

• Private Companies are generally referred to as "Pty's" (Proprietary Limited companies.)
• Public companies are companies that offer shares to the public.
• Companies not for "gain" are commonly referred to as Section 21's.
• External companies - Companies that are set up in SA by foreigners
• Incorporated companies where the directors remain jointly and severally liable for debts, generally referred to as Section 53(b).

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