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Chief Registrar's Circular 3 of 2012 was withdrawn by Chief Registrar's Circular 28 of 2013.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.
Has the deeds office changed its ruling with regards to documents lodged with Close Corporations not being typed out any longer and only inserting CC on the documents, as a couple of years ago they did not accept this, and now they seem to have changed back to the old system. Any comments to this will be appreciated. And will this also involve Pty Ltd and not Proprietary Limited. thank you Yvonne CJ JANEKE ATTORNEYS
I refer you to NOTICE TO EXAMINERS 10A/2013. It should however be noted that Section 22(1) of the Close Corporations Act No. 69/1984 only allows for the abbreviation of Close Corporation in English or any other official language, to be used in the description of such a Close corporation and may therefore only be reflected in the abbreviated format as CC or BK and may not be disclosed in full descriptive wording.
Yvonne The Act is clear in this regard. The abbreviation is peremptory