VAN VELDEN - DUFFEY INCORPORATED
Attorneys in Rustenburg

On our website you will be able to meet our team of attorneys, have your questions answered either by reading our FAQ's or by submitting your question to us, and download some helpful contracts for free! What is the difference between a close corporation, a company and a trust? CREATION CC: Registration of founding statement at the Companies Office Company: Registration of articles of association and statutes at the Companies Office Trust: Registration of trust deed at Master of the Supreme Court’s Office. EQUITY CC: Members hold members interest (maximum ten and only natural persons) Company: Shareholders hold shares Trust: Trustees hold trust assets on behalf of trust for the benefit the beneficiaries. INCOME CC: Members Company: Shareholders in the form of dividends Trust: Benficiaries either stipulated by trust deed or in the discretion of trustees in the case of a discretionary trust. CONTRACTS CC: Association agreement (optional) Company: Memorandum Trust: Trust deed. Can a sharholder force the company to provide him with the company’s books of account? A shareholder in a private company brought an application to exercise his right to obtain access to the company’s books of account. He was a 30% shareholder in the company and planned to sell his shares. He approached the company for access to the books, but his request was refused. The same principles will in our view also apply in the case of a close corporation or a trust. The registration of the company or close corporation however has to be finalized before the transfer can be registered in the Deeds Office. This can consequently delay the registration process. If, however, the process is dealt with properly from the start, no delay should occur.