Section 270: Provisions relating to private company

270. Provisions relating to private company A private company— (a) shall not have more than 25 shareholders provided that where 2 or more of its shareholders hold one or more shares jointly they shall be deemed to be one shareholder and provided further that, in computing the number 25, no account shall be taken of persons who are in the employment of the company, and who, having been formerly in the employment of the company were while in that employment and have continued, after the determination of that employment, to be members of the company; (b) shall not make any offer to the public to subscribe for its shares or debentures; (c) may provide in its constitution that the right to transfer its shares is restricted; (d) may dispense with the holding of shareholders meetings if resolutions, which would otherwise require the holding of a meeting, C35 – 161 [Issue 1] Companies Act are passed by means of entry in the minute book of the company under section 117 or by a unanimous resolution under section 106; (e) subject to its constitution, may remove a director from office by special resolution under section 138 (2); (f) which is a small private company shall not, pursuant to section 63 (1), be required to appoint a company Secretary; (g) which is a small private company shall not, pursuant to section 209, be required to appoint an auditor; (h) which is a small private company shall, pursuant to section 215 (3), be required to file with the Registrar a financial summary or its financial statements in accordance with section 211; (i) which is a small private company shall not, pursuant to section 211, be required to prepare and present its accounts in accordance with the International Accounting Standards; (j) may dispense with the provision of an annual report by unanimous resolution under section 218; or (k) may by unanimous agreement among the shareholders dispense with the observance of any of the matters referred to in section 272. [S. 270 amended by s. 4 (q) of Act 20 of 2002 w.e.f. 1 December 2001.]