With the publication of the proposed changes to the Companies Bill (expected to take effect in 2010), there has been uncertainty about the future of close corporations. The New Companies Bill provides for the co-existence of the new Companies Act and the Close Corporations Act.
The new Companies Act as the companies legislative framework forming maintaining small which has drawn on characteristics sufficiently streamlined and simplified render unnecessary application act formation of new recognised existing close corporations should be free retain current status until such time as member may determine tha it is in their interest convert to a bill provides for the indefinite continued existence of the Close Corporations Act, but provides for the closing of that Act as an avenue for incorporation of new entities, or for the conversion of companies into close corporations, as of the effective date of new Companies Act.
Basically it means that CIPRO will;
- " continue to maintain the Close Corporations register indefinitely as far as membership, addresses, Accounting Officer etc amendments are concerned,
- no longer register new Close Corporations as at the full implementation of the New Companies Act. "
- not allow a Company to convert to a Close Corporation as at the effective date of the New Companies.
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