This MOI is purely for use by Existing SMME Private Companies (small businesses) that wish to amend their articles and memorandum of association (as such was referred to under the previous Companies Act).
It may be used where the existing smme private company has any number of shareholders and any number of directors, for example, it can be used in the following scenarios:
- many shareholders and many directors;
- one shareholder and many directors;
- many shareholders and one director;
- one shareholder and one director;
- situations where all shareholders are also directors.
This SMME PRIVATE COMPANY MOI FOR EXISTING SMME PRIVATE COMPANIES:
- 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.