Protection of Businesses Act, 1978
R 385
Close Corporations Act, 1984 (Act No. 69 of 1984)Part IV : Membership33. Acquisition of member's interest by new member |
| (1) | A person becoming a member of a registered corporation shall acquire his member's interest required for membership— |
| (a) | from one or more of the existing members or his or their deceased or insolvent estates; or |
| (b) | pursuant to a contribution made by such person to the corporation, in which case the percentage of his member's interest is determined by agreement between him and the existing members, and the percentages of the interests of the existing members in the corporation shall be reduced in accordance with the provisions of section 38(b). |
| (2) | The contribution referred to in subsection (1)(b) may consist of an amount of money, or of any property (whether corporeal or incorporeal) of a value agreed upon by the person concerned and the existing members. |
