When is the appointment of a company secretary, an auditor, and an audit committee compulsory for a private comp
Written by Dr. Adv. Leigh Hefer & Jayne Hunter-Rhys. COMPANY SECRETARY’S HANDBOOK (2021). Published by Genesis Corporate Services.
Section 34(2) provides that a private company, personal liability company, or a non-profit company is not required to comply with Chapter 3 of the Act, except to the extent contemplated in section 84(1)(c), or as required by the company’s MOI.
This means that a private company, personal liability company, or non-profit company is not obliged to appoint a company secretary or an audit committee, even if it is obliged to have its AFS audited, unless its shareholders or members (a non-profit company has members), voluntarily elects to do so amending the company’s MOI to that effect.
Source: Section 34(2) of Companies Act 71 of 2008; Companies Regulation 44
Hard copy and E-Book Publications for the Professionals, Company Secretaries, Company Directors and Prescribed Officers, Members of CCs, Business Owners, Lecturers and Students on various business, compliance and legislative topics.
Section 34(2) provides that a private company, personal liability company, or a non-profit company is not required to comply with Chapter 3 of the Act, except to the extent contemplated in section 84(1)(c), or as required by the company’s MOI.
This means that a private company, personal liability company, or non-profit company is not obliged to appoint a company secretary or an audit committee, even if it is obliged to have its AFS audited, unless its shareholders or members (a non-profit company has members), voluntarily elects to do so amending the company’s MOI to that effect.
Source: Section 34(2) of Companies Act 71 of 2008; Companies Regulation 44
Hard copy and E-Book Publications for the Professionals, Company Secretaries, Company Directors and Prescribed Officers, Members of CCs, Business Owners, Lecturers and Students on various business, compliance and legislative topics.
Updated on: 22/05/2023
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