CIPC, in an attempt to simplify the registration of private companies, produced a standard short form and a standard long form MOI. Both of these are seriously deficient and in the case of the short form MOI, is in some instances in serious conflict with the Act,

If you have used the short form standard MOI, the truth is that the company, despite being registered as a private company, is actually a public company!

Amongst other things, the standard form does not restrict the transferability of shares, which is a requirement in the new Companies Act and the result is that the company is a public company. It will have to meet requirements for public companies, for example, the appointment of an audit committee, a secretary and undergoing a mandatory annual audit, holding annual general meetings and having at least three directors. If you have a fellow shareholders, and they sell their shares, you have no say over the transaction and could well find yourself with new and unwelcome partners!

If you are in this unenviable position, you need to have it addressed as soon as possible.