Memorandum of Incorporation to form a new SMME Private Company

R750.00

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It is prudent to use a customised MOI to incorporate a private company as opposed to using the CIPC’s
short-form of MOI. This article explains why .

The MOI for sale here protects shareholders’’ rights as opposed to the short form of CIPC MOI which protects directors rights. While directors and shareholders may invariably be the same people (especially in SMME companies), it is advisable to use a customised MOI from the start as companies grow and new directors get appointed (who may not necessarily be shareholders).

You may use this customised MOI to set up a NEW SMME private company.

For your convenience, we have drafted a shareholders’ agreement that is compatible with the SMME PRIVATE COMPANY MOI. It is available for purchase here .

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SKU: MNY-MOI-NEW-SMME-PRIVCO-001 Category:

Description

Moneyweb Insider Gold subscribers receive 12.5% discount!

It is prudent to use a customised MOI to incorporate a private company as opposed to using the CIPC’s
short-form of MOI. 

The MOI for sale here protects shareholders’’ rights as opposed to the short form of CIPC MOI which protects directors rights. While directors and shareholders may invariably be the same people (especially in SMME companies), it is advisable to use a customised MOI from the start as companies grow and new directors get appointed (who may not necessarily be shareholders).

You may use this customised MOI to set up a NEW SMME private company.

It can be used where the NEW SMME private company to be formed has any number of shareholders and any number of directors, i.e., use it to incorporate a new SME private company when:

  • there are many shareholders and many directors; or
  • there is one shareholder, but many directors; or
  • there are many shareholders, but only one director; or
  • there is one shareholder and one director; or
  • for SMME private companies where all shareholders are also directors.

This SMME PRIVATE COMPANY MOI has been drafted for use by parties wanting to incorporate a small, medium or micro private company that has any number of shareholders and any number of directors. It is focused around the protection of shareholder rights.

The SMME PRIVATE COMPANY MOI also:

  • does not contain ring-fencing provisions, as it does not allow for any restrictions or prohibitions to a company’s MOI;
  • restricts the transferability of securities;
  • prohibits the company from offering its securities to the public;

To incorporate your company, please visit the CIPC website. REMEMBER you will not use either of the standard MOIs, if you are using the one you have purchased off this site.

For your convenience, we have drafted a shareholders’ agreement that is compatible with the SMME PRIVATE COMPANY MOI. It is available for purchase here .

By incorporating your own company, you:

  • get to engage with each clause of the MOI and understand the implications thereof;
  • get to know what must and must not be in your shareholders’ agreement; remember in terms of the new Companies Act, the MOI CANNOT be amended by a shareholders’ agreement and should the latter conflict with the MOI, it will be void to the extent of the conflict;
  • ensure that you hold your company’s legal affairs in your own hands; as a small business owner it is imperative for you to understand the legal and regulatory framework that impacts your business to the best of your ability; why not start with your MOI and shareholders’ agreement;
  • get to engage and register with CIPC; it is best- as a small business owner- to start engaging with CIPC as soon as you are able to and to understand the workings of CIPC. This will help you when it comes to registering annual returns and handling the company secretarial and governance work related to your small business; it really is best to start sooner rather than later.

Should you wish to have your company incorporated by a party that operates in this area, we exhort you to please ensure that the party handling the incorporation on your behalf is a suitably qualified legal practitioner. 

Moneyweb Readers: R750.00 incl VAT
Moneyweb Insider Gold subscriber: R 656.25 incl VAT

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