Corporate Law Terms

Annual return

A recurring CIPC filing used by South African companies and close corporations to confirm continued registration and update required information.

Beneficial ownership

Information about the natural persons who ultimately own, control, or benefit from a company or close corporation.

Board resolution

A formal decision recorded by a company's board of directors under the company's governance rules.

Business rescue

A Companies Act process intended to rehabilitate a financially distressed company under supervision of a business rescue practitioner.

Company registration

The incorporation or registration of a company with CIPC so that it exists as a juristic person under South African company law.

Director

A person appointed to manage or help manage the business and affairs of a company under the Companies Act framework.

Fundamental transaction

A major company transaction under the Companies Act framework, such as a significant disposal, merger, amalgamation, or scheme arrangement.

Liquidation

A legal process for winding up a company or close corporation, collecting assets, dealing with creditors, and ending or resolving the entity's affairs.

Memorandum of Incorporation

A company's founding constitutional document that sets out its governance rules, powers, rights, and internal arrangements under the Companies Act.

Prescribed officer

A senior company officer who may be treated similarly to a director for certain Companies Act duties and liability questions.

Private company

A company type commonly used for South African businesses, usually identified by '(Pty) Ltd' and regulated under the Companies Act.

Shareholder

A person or entity that holds shares in a company and has rights and obligations linked to those shares.

Shareholders agreement

A contract between shareholders that regulates ownership, control, decision-making, exits, and dispute handling in a company.

Solvency and liquidity test

A Companies Act test used to assess whether a company can pay its debts and whether its assets exceed its liabilities after a proposed action.

Core definitions

Core terms in this track

Annual return

A recurring CIPC filing used by South African companies and close corporations to confirm continued registration and update required information.

Beneficial ownership

Information about the natural persons who ultimately own, control, or benefit from a company or close corporation.

Business rescue

A Companies Act process intended to rehabilitate a financially distressed company under supervision of a business rescue practitioner.

Company registration

The incorporation or registration of a company with CIPC so that it exists as a juristic person under South African company law.

Director

A person appointed to manage or help manage the business and affairs of a company under the Companies Act framework.

Liquidation

A legal process for winding up a company or close corporation, collecting assets, dealing with creditors, and ending or resolving the entity's affairs.

Memorandum of Incorporation

A company's founding constitutional document that sets out its governance rules, powers, rights, and internal arrangements under the Companies Act.

Private company

A company type commonly used for South African businesses, usually identified by '(Pty) Ltd' and regulated under the Companies Act.

Shareholder

A person or entity that holds shares in a company and has rights and obligations linked to those shares.

Shareholders agreement

A contract between shareholders that regulates ownership, control, decision-making, exits, and dispute handling in a company.

Solvency and liquidity test

A Companies Act test used to assess whether a company can pay its debts and whether its assets exceed its liabilities after a proposed action.

Board resolution

A formal decision recorded by a company's board of directors under the company's governance rules.

Fundamental transaction

A major company transaction under the Companies Act framework, such as a significant disposal, merger, amalgamation, or scheme arrangement.

Prescribed officer

A senior company officer who may be treated similarly to a director for certain Companies Act duties and liability questions.

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Annual return

A recurring CIPC filing used by South African companies and close corporations to confirm continued registration and update required information.

Beneficial ownership

Information about the natural persons who ultimately own, control, or benefit from a company or close corporation.

Business rescue

A Companies Act process intended to rehabilitate a financially distressed company under supervision of a business rescue practitioner.

Company registration

The incorporation or registration of a company with CIPC so that it exists as a juristic person under South African company law.

Director

A person appointed to manage or help manage the business and affairs of a company under the Companies Act framework.

Liquidation

A legal process for winding up a company or close corporation, collecting assets, dealing with creditors, and ending or resolving the entity's affairs.