Identifying the structure envisioned for closely held incorporated business entities under the new statutory dispensation

Abstract

In the process of company law reform, the official belief was expressed that the regime provided in the new Companies Act 71 of 2008 for forming and maintaining a structure that reflects the characteristics of a close corporation had been sufficiently simplified so as to obviate the need to retain the Close Corporations Act 69 of 1984 as an avenue for new incorporations. The question arises as to whether such a structure is indeed provided for under the new Companies Act and, if so, what its salient features are. This contribution briefly addresses these questions.