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South African Companies Act of 2008

Writer: Priyesh ModiPriyesh Modi

It is recommended that companies registered under the South African Companies Act of 2008 include provisions for an expedited process in their Memorandum of Incorporation (MOI) to address exceptional circumstances.


For instance, if a company urgently requires equity funding, the MOI can provide a mechanism whereby a majority of shareholders can waive compliance with the pre-emptive provisions that regulate the issue of shares.


However, the challenge lies in identifying exceptional circumstances since they can vary from one company to another. If a company decides to include shortcuts, it should also establish safeguards to prevent any abuse in using the expedited process.


 
 

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