Miss Shaneen Vlaandorp
QUESTION 6
General characteristics
Close corporationJust Juice CC | Public companyJuicy Lucy Ltd. | Private companyJungle Juices (Pty) Ltd. | 1 – 10 members | Any number of people – no less than 7 | Number of members not more than 50 | Separate legal entity | Separate legal entity | Separate legal entity | Founding statement | Memorandum of Association, Articles of Association and Prospectus | Memorandum of Association and Articles of Association | Limited liability for debt | Limited liability for debt | Limited liability for debt | Profit – distributed to members | Shareholders get dividends | Profit – distributed to shareholders | Registration with Registrar of Close Corporations | Registration with the Registrar of Companies | Registration with the Registrar of Companies | Advantages of form of ownership | Requirements for formation less formal than companies | Can obtain large amount of capital | Large amount of capital can be raised | Cheaper, faster and simple to register | Offers the shareholders very good protection | Very suitable for family businesses | Responsible for its own assets and liabilities | Any losses are distributed among a big number of shareholders – lessens the blow | Existing shareholders have control over new shareholders – shares not freely negotiable | Members have limited liability for the company's debts | Shareholders can appoint skilled directors | It does not need to hold statutory meetings | Unlimited continuity | Shares can freely be traded | Unlimited continuity | No requirements for meetings and financial statements | Unlimited continuity | | Taxation issues | Taxed at fixed rate – members not taxed on their profit share | Company and shareholders are taxed | Taxed at a fixed rate.At the moment dividends are still tax-free |
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DEFINITION OF FRANCHISE (can also be introduction) (3) * Selling a business idea as a comprehensive package deal * The package will include
General characteristics
Close corporationJust Juice CC | Public companyJuicy Lucy Ltd. | Private companyJungle Juices (Pty) Ltd. | 1 – 10 members | Any number of people – no less than 7 | Number of members not more than 50 | Separate legal entity | Separate legal entity | Separate legal entity | Founding statement | Memorandum of Association, Articles of Association and Prospectus | Memorandum of Association and Articles of Association | Limited liability for debt | Limited liability for debt | Limited liability for debt | Profit – distributed to members | Shareholders get dividends | Profit – distributed to shareholders | Registration with Registrar of Close Corporations | Registration with the Registrar of Companies | Registration with the Registrar of Companies | Advantages of form of ownership | Requirements for formation less formal than companies | Can obtain large amount of capital | Large amount of capital can be raised | Cheaper, faster and simple to register | Offers the shareholders very good protection | Very suitable for family businesses | Responsible for its own assets and liabilities | Any losses are distributed among a big number of shareholders – lessens the blow | Existing shareholders have control over new shareholders – shares not freely negotiable | Members have limited liability for the company's debts | Shareholders can appoint skilled directors | It does not need to hold statutory meetings | Unlimited continuity | Shares can freely be traded | Unlimited continuity | No requirements for meetings and financial statements | Unlimited continuity | | Taxation issues | Taxed at fixed rate – members not taxed on their profit share | Company and shareholders are taxed | Taxed at a fixed rate.At the moment dividends are still tax-free |
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DEFINITION OF FRANCHISE (can also be introduction) (3) * Selling a business idea as a comprehensive package deal * The package will include