Basic Business Law. Lesson 8. Companies
This is the eighth lesson of the "Student Skills for Life Success" "Basic Business Law" course. The topics covered in this booklet are: 1. The nature of a company 2. The Companies Act 3. The Companies and Intellectual Property Commission 4. Types of companies 5. Forming a company 6. Trading as a private company 7. Shareholder meetings 8. Duties and rights of directors 9. Private companies in financial distress
This is the eighth lesson of the "Student Skills for Life Success" "Basic Business Law" course. The topics covered in this booklet are:
1. The nature of a company
2. The Companies Act
3. The Companies and Intellectual Property Commission
4. Types of companies
5. Forming a company
6. Trading as a private company
7. Shareholder meetings
8. Duties and rights of directors
9. Private companies in financial distress
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If the company is now liquidated, ABC Bank will be treated as a creditor with<br />
security over the assets of the company. This means that they will be paid first and<br />
will properly be able to recover the full amount owed to them when the shares are sold as part of the<br />
liquidation of the company.<br />
Creditors without security over assets will have to take their place in the line of creditors and will only get<br />
back a portion of what was owed to them, expressed as a certain amount of cents in the rand. For example,<br />
the liquidated assets (money) is proportionally divided among the creditors without security over assets and<br />
all of these get 10c for every rand that was owed to them. The rest of the money will then have to be written<br />
off as bad debt.<br />
When the company's affairs have been wind up, the liquidator will call a final meeting of the stakeholders and<br />
send the final accounts of the company to CIPC. The company is then dissolved.
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