Montavi (Pty) Ltd is a private company with the following shareholders: 1. Sem, who has been declared a prodigal by the High Court 2. Nusiku, Sem’s 25 year old daughter 3. Nelson, Sem’s 25 year old son 4. Oshini CC, the trustee of a testamentary trust with Nelson and Okathimeti (Pty) Ltd as the only beneficiaries of the trust 5. Starlight (Pty) Ltd, the curator of the insane Ouma Kwatha, mother of Sem,During a general meeting of the members of Montavi (Pty) Ltd, it is decided that it would be to the benefit of all if Montavi (Pty) Ltd were to convert into a close corporation. Montavi (Pty) Ltd wants to know whether it can be converted into a close corporation. Advise
No, after the implementation of the new Companies Act (Act 71 of 2008) no CC can be registered and no conversions from Companies to CCs will be allowed. However, the existing CCs will be maintained. Therefore, I would advise Montavi (Pty) Ltd to consider converting the private company to a more suitable form that conforms with the new Companies Act.