Public Service Commission Act, 1997
R 385
Close Corporations Act, 1984 (Act No. 69 of 1984)Part IV : Membership40. Financial assistance by corporation in respect of acquisition of members' interests |
A corporation may give financial assistance (whether directly or indirectly and whether by means of a loan, guarantee, the provision of security or otherwise) for the purpose of, or in connection with, any acquisition of a member's interest in that corporation by any person, only—
| (a) | with the previously obtained written consent of every member of the corporation for the specific assistance; |
| (b) | if, after such assistance is given, 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 assistance 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. |
