Can a trust be a director of a company in South Africa?

Can a trust be a director in a company?

ALL ABOUT TRUSTS: Despite its lack of legal personality, a trust has legal capacity and the trustees, on behalf of the trust, may perform juristic acts relating to trust assets, such as managing investments in companies, as long as the trust deed allows for that. …

Can a trust be a member of a company?

Answer: Under the erstwhile Companies Act, 1956, section 153 specifically stated that trust cannot become a member of a company. However, under the Act a trust can become a member if there is a specific provision to the same effect in the articles of association of the company.

Can a trust own a company in South Africa?

A trust itself cannot own shares in a company, however a trustee can hold them on behalf of someone else.

Who can be a director of a company in South Africa?

A director of a company has to be 18 in order to be a director on the company as this is a requirement from CIPC.

Can you be a director of a company without owning shares?

Shareholders and directors have two completely different roles in a company. The shareholders (also called members) own the company by owning its shares and the directors manage it. Unless the articles say so (and most do not) a director does not need to be a shareholder and a shareholder has no right to be a director.

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Who Cannot be a member of a company?

1972, a firm not being a person cannot be registered as a member of the Company. Such firm can be a member of section 8 company. In the case of partners, a firm as such cannot be registered as a member, but the partners in their individual names may be registered as joint holders of the shares.

Can a family trust run a business?

You can run your business through a discretionary trust or a unit trust. While running your business through a trust has tax advantages, the biggest disadvantage is distributing any profit or income to beneficiaries each financial year. Running a growing business with this restriction is difficult.

Can a trustee sell trust property without all beneficiaries approving?

Can trustees sell property without the beneficiary’s approval? The trustee doesn’t need final sign off from beneficiaries to sell trust property.

What are the disadvantages of a trust?

Drawbacks of a Living Trust

  • Paperwork. Setting up a living trust isn’t difficult or expensive, but it requires some paperwork. …
  • Record Keeping. After a revocable living trust is created, little day-to-day record keeping is required. …
  • Transfer Taxes. …
  • Difficulty Refinancing Trust Property. …
  • No Cutoff of Creditors’ Claims.

How does a trust account work in South Africa?

Currently a trust is defined widely in the South African income tax legislation as meaning any trust fund consisting of cash or other assets that are administered and controlled by a person acting in a fiduciary capacity, where such person is appointed under a deed of trust or by agreement or under the will of a …