What is a Close Corporation (CC)?
The close corporation (CC) is a more simplified and flexible business than a company. It is ideally suited to small businesses. The managerial and administrative requirements for close corporations are less formal than for companies.
In contrast to a company, the CC Act has been so designed that the ordinary person would be able to draft the papers and register the corporation by her/himself.
Although a close corporation is required to have an Accounting Officer, audited financial statements are not required. The Companies Act prescribes compulsory meetings for companies, such as annual general meetings. There are no equivalent requirements for close corporations. Meetings are usually held between members on an ad hoc basis. The members of CCs do not all have to take an active role in the running of the business. Although in most CCs, the “members” are also the managers of the business.
Close Corporations are governed by the Close Corporations Act 69 of 1984.
NB, Close Corporations can NO longer be registered.