Close Corporations Act
The Close Corporations Act, 69 of 1984, was enacted by Parliament in June 1984. Regulations dealing with certain administrative and other matters have been published in the Government Gazette No. 9503 and these are to be read in conjunction with the Close Corporations Act. In addition, certain amendments to the principal Act were made in various amendment acts.
The Companies Act, 2008 has changed the regulatory framework applicable to close corporations. The requirements of the Companies Act to calculate the public interest score to determine whether the company is required to be audited is now also applicable to a close corporation. Close corporations meeting the requirements to be audited would also need to apply the Financial Reporting Framework as set out in the Companies Regulations.
The Companies Act, 2008 also prohibits the registration of any new close corporation after 1 May 2011. Close corporations can be converted to companies, but companies can no longer be converted to close corporations. Existing close corporations would be administered under the Close Corporations Act indefinitely.