Companies Act, 1973 (Act No. 61 of 1973)Chapter III: Types and forms of CompaniesConversion of One Type or Form of Company into Another Type or Form of Company20. Meaning of "private company" and cessation of its privileges |
| 1) | In this Act the expression "private company" means a company having a share capital and which by its articles- |
| a) | restricts the right to transfer its shares; and |
| b) | limits the number of its members (exclusive of persons who are in the employment of the company and of persons who having been formerly in the employment of the company were, while in such employment, and have continued after the termination of such employment to be, members of the company) to fifty; and |
| c) | prohibits any offer to the public for the subscription of any shares or debentures of the company. |
| 2) | Where two or more persons hold one or more shares of a company jointly they shall, for the purposes of this section, be treated as a single member. |
| 3) | No private company shall alter its articles in such manner that they no longer include all of the provisions referred to in subsection (1) unless it is at the same time converted into a public company. |
| 4) | [Deleted by the Corporate Laws Amendment Act No. 24 of 2006] |