PDSnet Glossary

Term

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Introductory Technical Fundamental Economics Opinion Sectors International Regulatory Other Markets

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Name	synonyms = 1, variations = 2, abbreviations = 3

Publish: (0 = no, 1 = yes)

Definition

A company defined by the Companies Act which may not make an offer of shares to the public - as opposed to a public company which may. So all the shares trading on the JSE represent public companies. Private companies must have the letters (Pty) Ltd in their name and cannot have more than fifty shareholders. They must have at least one director and one shareholder. Their Memorandum of Incorporation (MOI) must restrict the sale or transfer of shares - usually by giving the other shareholders the right of first refusal.

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