Pretoria Registrar's Circular No. 09 of 2014
To provide clarity around the uncertainty when to use "NPC" or "Section 21 company" in case of conditions in favour of Home Owners Associations.
The Companies Act, 2008 (Act 71 of 2008) as amended by the Companies Amendment Act, 2011 (Act 3 of 2011), came into operation on 01 May 2011. This Act brought about certain changes as to how Companies should be described (suffixes).
Chief Registrar's Circular 3 of 2012 was withdrawn by Chief Registrar's Circular 28 of 2013. Paragraph 4.4.4 of Chief Registrar's Circular 28 of 2013 reads as follows: "Where a company's name appears in a condition of title such..., restrictive or other conditions, it will not be necessary to change the name when the conditions are brought forward into a new deed. It will also not be necessary to update the title deed to reflect the new name of the company."
Correct conveyancing dictates that conditions of title should not be changed without a relevant application. All newly created conditions must refer to the correct name (suffix) in terms of the new Companies Act. If the new draft deed is updated with regard to the correct suffix, examiners are requested to accept it as such an not to insist on changing it back to the old description.