Results 1 to 5 of 5

Thread: CONVERTING CC TO PTY

  1. #1
    Junior Member
    Join Date
    Nov 2013
    Location
    Ballito
    Posts
    12
    Thanks
    0
    Thanked 0 Times in 0 Posts

    CONVERTING CC TO PTY

    Hi Everyone

    Please can I have some clarity on conversions.

    A CC needs to be converted to a PTY. How is the member's interest converted to shares?

    If two members exist with R50 contribution each for 50% interest, how does this now get converted to shares? How many shares? The value - must the business be valued in any way?

    Any feedback is appreciated.

    Thank you.

  2. #2
    Silver Member
    Join Date
    Aug 2014
    Location
    Johannesburg
    Posts
    310
    Thanks
    26
    Thanked 17 Times in 15 Posts
    Members become shareholders.

    Members interest converts to shares in the same proportion.

  3. #3
    Bronze Member Beancounter's Avatar
    Join Date
    Oct 2011
    Location
    Pretoria
    Posts
    118
    Thanks
    19
    Thanked 29 Times in 24 Posts
    Quote Originally Posted by Basment Dweller View Post
    Members interest converts to shares in the same proportion.
    Not necessarily in the same proportion. Refer the CIPC guide on completion of the CoR18.1 for conversion of CC to Pty.

  4. #4
    Junior Member
    Join Date
    Nov 2013
    Location
    Ballito
    Posts
    12
    Thanks
    0
    Thanked 0 Times in 0 Posts

    conversting cc to pty

    Quote Originally Posted by Beancounter View Post
    Not necessarily in the same proportion. Refer the CIPC guide on completion of the CoR18.1 for conversion of CC to Pty.
    Thank you to you both for your response.

    However, my question is more directed to the form 15.1A on which you have to enter the amount of shares? If we want to convert from CC to PTY, retain both the members as shareholders and do employee incentive share scheme, how many shares must we issue and how is this calculated on what basis?

  5. #5
    Gold Member
    Join Date
    Mar 2012
    Location
    Vanderbijlpark
    Posts
    886
    Thanks
    83
    Thanked 381 Times in 298 Posts
    The number of shares on 15.1 refers to the authorised share capital. In your case, where you envisage issuing more shares down the line, make it substantial so that you actually can.

    On conversion, you will issue shares to the existing shareholders, as agreed or determined by the directors, who would be the existing cc members.

Similar Threads

  1. Replies: 3
    Last Post: 07-Mar-13, 06:09 PM
  2. Converting a CC to a sole proprietor
    By bantersaurus in forum Tax Forum
    Replies: 11
    Last Post: 17-May-12, 05:00 PM
  3. Converting pdf to MSword or OO.
    By Faan in forum Technology Forum
    Replies: 9
    Last Post: 12-May-11, 09:47 PM

Did you like this article? Share it with your favourite social network.

Did you like this article? Share it with your favourite social network.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •