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Thread: Can a Private company own a CC

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    Can a Private company own a CC

    Good day everyone,

    Im in the process of opening more companies and would like most of them to full under the same group, however they'll have different names. Is it possible for a Private company to own CC? or is there a better way?

    I know that a CC cant own another CC and as a member of a CC I cant own more than one CC unless I want to pay heavy taxes.

    What can I do???

    Here is a list of the business types:
    - Distribution (Import/Export)
    - 2x Retailer (Sales of products)
    - Productions (Event sound hire)

    Im going to own other small business in the future, such as a coffee shop but I wont join it with these as its not in the same line.

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    Diamond Member Justloadit's Avatar
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    Quote Originally Posted by Soundinmind View Post
    I know that a CC cant own another CC and as a member of a CC I cant own more than one CC unless I want to pay heavy taxes.
    If you are a member/partner/director, you do not get special dispensation on tax, so either way you have no choice. It's not that you pay heavy taxes, if you only have one CC and work in it, then there is a reduced tax you pay. You do not get penalized if you have one or more or are involved in one or more business, you then get taxed at the prescribed rate according to earnings.

    At one stage Trust could not be share holders in CC,s but this changed recently. I am not sure if this implies to other CCs.
    Victor - Knowledge is a blessing or a curse, your current circumstances make you decide!
    Solar and LED lighting solutions - www.microsolve.co.za

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    Platinum Member sterne.law@gmail.com's Avatar
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    no, a company can not be a shareholder in a cc. only natural persons may be shareholders and not juristic persons 9companies, trusts etc0

    You can also own as many cc as you want.
    However a cc can only have 10 members.
    Anthony Sterne

    www.acumenholdings.co.za
    DISCLAIMER The above is merely a comment in discussion form and an open public arena. It does not constitute a legal opinion or professional advice in any manner or form.

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    Platinum Member sterne.law@gmail.com's Avatar
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    A trust itselfcannot be a member of a cc, but a trustee can be a member in his or her role as trustee of a trust.
    Anthony Sterne

    www.acumenholdings.co.za
    DISCLAIMER The above is merely a comment in discussion form and an open public arena. It does not constitute a legal opinion or professional advice in any manner or form.

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    Diamond Member Justloadit's Avatar
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    Quote Originally Posted by sterne.law@gmail.com View Post
    no, a company can not be a shareholder in a cc. only natural persons may be shareholders and not juristic persons 9companies, trusts etc0

    You can also own as many cc as you want.
    However a cc can only have 10 members.
    Quote Originally Posted by sterne.law@gmail.com View Post
    A trust itselfcannot be a member of a cc, but a trustee can be a member in his or her role as trustee of a trust.
    Dear Anthony,

    I beg to differ on your statement, as I know there was an ammendment to the bill. I have an extract here from 'Swift registrations" outlining this.

    Quote Originally Posted by Swift Registrations
    Adding a Trust as a member of a Close Corporation

    CIPRO has recently allowed Trusts to be members of Close Corporations provided that:

    • The beneficiaries are all natural persons (i.e. not companies)
    • The combined number of members plus beneficiaries do not exceed 10


    To assist us in registering the Trust as the new member of your CC please supply us with the following documentation:

    1. A certified copy of the Letter of Authority issued by the Master of the Court.
    2. A certified copy of the section of the Trust Deed identifying who the beneficiaries are.
    3. A letter (on the letterhead of the trust) signed by all trustees stating the following:
    a. The name, registration number and address of the trust
    b. The names of all the trustees
    c. The names of all beneficiaries
    4. An original letter (signed by all trustees) authorizing one trustee as the representative of the trust for purposes of holding and dealing with the member’s interest in the close corporation.
    5. The nominated trustee must sign the attached power of attorney.
    6. Please send us via email all the ids, emailed to ids@swiftreg.co.za.
    Victor - Knowledge is a blessing or a curse, your current circumstances make you decide!
    Solar and LED lighting solutions - www.microsolve.co.za

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    Platinum Member sterne.law@gmail.com's Avatar
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    Six of one half a dozen of another is the saying I believe. The trustee is the member but by virtue that he represents the trust, in esence the trust is a member.
    Importantly - the beneficiaries amy not be juristic persons.
    Anthony Sterne

    www.acumenholdings.co.za
    DISCLAIMER The above is merely a comment in discussion form and an open public arena. It does not constitute a legal opinion or professional advice in any manner or form.

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    Diamond Member Justloadit's Avatar
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    Hi Anthony,

    The question was can a Trust own shares in a CC. The answer is yes, as long as the trustees are natural persons,(not sure what un-natural would be, maybe aliens from another galaxy)
    Victor - Knowledge is a blessing or a curse, your current circumstances make you decide!
    Solar and LED lighting solutions - www.microsolve.co.za

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    Site Caretaker Dave A's Avatar
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    Well, it looks like the company owning the cc question is answered - still can't happen. I wasn't sure on that one.

    I think the change allowing trusts to hold an interest in cc's came about through BEE issues.
    The trouble with opportunity is it normally comes dressed up as work.

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    Platinum Member sterne.law@gmail.com's Avatar
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    Actually the question was can a private company own shares in a cc, if you really want to be technical and flatter us with your brilliance
    but we bow to your determination to -
    a) be right
    b) have the last word!!!!!
    Anthony Sterne

    www.acumenholdings.co.za
    DISCLAIMER The above is merely a comment in discussion form and an open public arena. It does not constitute a legal opinion or professional advice in any manner or form.

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    KimH (13-Dec-10)

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    Site Caretaker Dave A's Avatar
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    Smile and wave, guys - question answered and thanks for the contributions.

    B
    The trouble with opportunity is it normally comes dressed up as work.

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