When conducting a company meeting, the minutes of the meeting are usually taken. When preparing company meeting minutes, details such as the type of meeting, date, time, meeting attendees and transacted businesses are usually recorded. The minutes of a meeting should provide a snapshot of what transpired at the meeting and the actions to take [...]
The winding up or liquidation of a company is a process whereby the assets of a company are sold and the monies collected are used to pay off its debts. After all its creditors are paid off, any remaining monies can then be distributed to the shareholders of the company. When this process is completed, [...]
For various reasons, you may wish to close your company. To close a company you can either wind up or strike off the local company. Striking off a company is the more straightforward option so long as the requirements are adhered to. The striking off can be done via the Bizfile+, the Business Filing Portal [...]
Minority shareholders are shareholders with a non-controlling stake in the company. It refers to the shareholders with voting rights but the number of shares that they hold are insufficient to have a say in the company's affairs. In most cases, this refers to 50 per cent of the company's voting shares. Shareholders with voting rights [...]
Generally, a director can be remunerated in two ways, director's fees and salary. Director's fees Director's fees are paid to the director for directorial services rendered to the company. It is not required for a company to pay its directors any director's fees but if it does, this payment has to be approved in a [...]
The shares of a company represent ownership in a company. When a company is incorporated, the shareholders are the ones who own the company. The shareholders must also determine who owns how many shares. There are also different classes of shares with different rights. Shareholders are the ones who invest in the company and in [...]
Share capital represents the amount that the shareholders invest in a company. Share capital may be increased or reduced. If the shares are paid for then the shares are considered paid up. If shares are partially paid or have yet to be paid up then we classify this as unpaid share capital. The shareholders holding [...]
For certain reasons, a company may wish to remove a director. Some of the reasons may be: Poor performance Breach of duties to the company Negative limelight on the individual In a private company According to the Companies Act, the removal of a company director is through an ordinary shareholder's resolution. This is provided if [...]
Certain companies may decide to close down for a variety of reasons. These companies may have ceased business and the shareholders and directors may decide that they would like to close down the company. Some other reasons might include unprofitability of business, the retirement of key personnel and disagreements among key members in the company. [...]
Dividends are the distribution of a company's profits to its shareholders. The shareholders are the owners of the company and they subscribed to the shares of the company. Dividends can only be paid if the company has profits. Paying dividends when a company has no profits is illegal. If a director of a company approves the [...]