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Companies Act, 2008 (Act No. 71 of 2008)

Schedule 1 : Provisions concerning non-profit companies

4. Members

 

 

1) A non-profit company is not required to have members, but its Memorandum of Incorporation may provide for it to do so.

 

2) If the Memorandum of Incorporation of a non-profit company provides for the company to have members, it—
a) must not restrict or regulate, or provide for any restriction or regulation of, that membership in any manner that amounts to unfair discrimination in terms of section 9 of the Constitution;
b) must not presume the membership of any person, regard a person to be a member, or provide for the automatic or ex officio membership of any person, on any basis other than life-time membership awarded to a person—
i) for service to the company or to the public benefit objects set out in the company’s Memorandum of Incorporation; and
ii) with that person’s consent;
c) may allow for membership to be held by juristic persons, including profit companies;
d) may provide for no more than two classes of members, that is voting and non-voting members, respectively; and
e) must set out—
i) the qualifications for membership;
ii) the process for applying for membership;
iii) any initial or periodic cost of membership in any class;
iv) the rights and obligations, if any, of membership in any class; and
v) the grounds on which membership may, or will, be suspended or lost.