Close Corporations Act, 1984 (Act No. 69 of 1984)

Part IV : Membership

38. Maintenance of aggregate of members' interests
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The aggregate of the members' interests in a corporation expressed as a percentage shall at all times be one hundred per cent, and for that purpose—

(a)any transfer of the whole, or a portion, of a member's interest shall be effected by the cancellation or the reduction, as the case may be, of the interest of the member concerned and the allocation in the name of the transferee, if not already a member, of a member's interest of the percentage concerned, or the addition to the interest of an existing member of the percentage concerned;
(b)when a person becomes a member of a registered corporation pursuant to a contribution made by him to the corporation, the percentage of his member's interest shall be agreed upon by him and the existing members, and the percentages of the interests of the existing members shall be reduced proportionally or as they may otherwise agree; and
(c)any member's interest acquired by the corporation shall be added to the respective interests of the other