n Transactions of the Centre for Business Law - Groups / Groepe : caput 6
|Article Title||Groups / Groepe : caput 6|
|© Publisher:||University of the Free State|
|Journal||Transactions of the Centre for Business Law|
|Publication Date||Jan 2010|
|Pages||147 - 172|
Simplification was a primary aim in the design and drafting of the Close Corporations Act, 1984. It avoids any real separation between ownership and control by restricting the maximum number of members to ten and by requiring them, in principle to be natural persons. Exclusion of corporate membership prevents a situation where public companies can by converting their subsidiaries into close corporations do business in a form never intended for them. More particularly it is said to avoid the necessity of "intricate and cumbersome clauses" to "provide for disclosure and abuse of control arising from group formation."
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