New SMME Private Companies – Incorporating, Replacing and Drafting Agreements

We have explained here why it is so important to have a customised MOI drafted, the interaction between the MOI and the Shareholders’ Agreement, and the problem with the short standard form of CIPC MOI (form CoR15.1.A).

Please note that in terms of the new Companies Act, companies will have just one constitutive document, viz. the Memorandum of Incorporation (“MOI”). As of 1 May 2013, should there be a conflict between a company’s MOI and its shareholders’ agreement, the MOI shall prevail.

It is important for small businesses to ensure that their articles and memorandum of association (now known as the MOI) are replaced with a MOI that is compliant with the new Companies Act, and to further ensure that they are not tripped up by a shareholders’ agreement that pre-dates 1 May 2013.

To assist small business, we have drafted a customised MOI for you that can be used when you wish to incorporate a small business. We have also made available to you a shareholders’ agreement that is compliant with this MOI.

Additionally, should your small business still be labouring under its articles and memorandum of association (previous Companies Act requirements), we encourage you to use the MOI here to replace such. You will require a new compliant shareholders’ agreement, which may be purchased here.

Continue visiting this site as we make more legal resources available for small businesses.

<< Back to Articles


Close Cart
Back to top