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Close Corporations Act, 1984 (Act No. 69 of 1984)

Part IV : Membership

39. Payment by corporation for members' interests acquired

 

(1) Payment by a corporation in respect of its acquisition of a member's interest in the corporation shall be made only—
(a) with the previously obtained written consent of every member of the corporation, other than the member whose interest is acquired, for the specific payment;
(b) if, after such payment is made, the corporation's assets, fairly valued, exceed all its liabilities;
(c) if the corporation is able to pay its debts as they become due in the ordinary course of its business; and
(d) if such payment will in the particular circumstances not in fact render the corporation unable to pay its debts as they become due in the ordinary course of its business.

 

(2) For the purposes of subsection (1) "payment" shall include the delivery or transfer of any property.