Close Corporations Act, 1984 (Act No. 69 of 1984)Part III : Registration, Deregistration and Conversion24. Contributions by members |
| (1) | Every person who is to become a member of a corporation upon its registration, shall make to the corporation an initial contribution of money, of property (whether corporeal or incorporeal), or of services rendered in connection with and for the purposes of the formation and incorporation of the corporation, and particulars of such contribution shall be stated in the founding statement of the corporation referred to in section 12, as required by paragraph (f) of that section. |
| (2) | The amount or value of the members' contributions, or of the contribution of any one or more members, may from time to time by agreement among all the members— |
| (a) | be increased by additional contributions of money or property (whether corporeal or incorporeal) to the corporation by existing members or, in terms of section 33(1)(b), by a person becoming a member of a registered corporation; or |
| (b) | be reduced, provided that a reduction by way of a repayment to any member shall comply with the provisions of section 51(1). |
| (3) | Particulars of any increase or reduction of a member's contribution in terms of subsection (2) shall be furnished in an amended founding statement referred to in section 15(1). |
| (4) | Money or property referred to in subsection (1) or (2)(a) shall, in order to vest ownership thereof in the corporation, be paid, delivered or transferred, as the case may be, to the corporation within a period of 90 days— |
| (a) | after the date of registration of the corporation, in the case of an initial contribution referred to in subsection (1); or |
| (b) | after the date of the registration of an amended founding statement in connection with any additional contribution referred to in subsection (2)(a). |
| (5) | An undertaking by a member to make an initial or an additional contribution to a corporation shall be enforceable by the corporation in legal proceedings. |