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Feeling overwhelmed about the 30 April 2013 deadline for submitting your revised Memorandum of Incorporation's (MoI’s)?
by Madeleine Coetzee - Monday, 22 April 2013, 10:09 AM
 

Feeling overwhelmed about the 30 April 2013 deadline for submitting your revised Memorandum of Incorporation's (MoI’s)?

I feel that this process is too important to rush, so what are the consequences of missing the deadline?

The transitional provisions of the Companies Act, No 71 of 2008 (the Act) states that your first amendment would be free, but this really isn't a concern as CIPC pretty much are charging practitioners anyway as they are granting your first action with them in the 2 year transitional period as your non chargeable service.

My concern is the change in ranking of the shareholders agreements. On the 1st of May 2013, the MoI will rank first, if it is silent on a matter, the Act will then be considered. If both the MoI and the Act are silent - only then are the shareholders agreements considered.

So if I had a stack of MoI's to amend, I would:

  1. 1.       put the companies with shareholders agreements first.
  2. 2.       then I would tackle the companies with difficult personalities involved as the most urgent.
  3. 3.       I would also prioritise any other company that may be dealing with a dispute of some nature in the near future.
    Remember if a concept/provision is sacred to the company, the best protection is to insert it in the MoI!
 


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