, QUESTION 1
1.1 Steps to Incorporate a Company
To incorporate a company like Uniq Ltd, Mandla and Suzan must first choose the type of company
they wish to form and reserve an appropriate company name with the Companies and Intellectual
Property Commission (CIPC), although reserving a name is not mandatory (Delport 2014, p. 26).
They then need to draft a Memorandum of Incorporation (MOI), which outlines the rights, duties,
and responsibilities of both shareholders and directors, ensuring it complies with the Companies
Act (Delport 2014, p. 28).
A Notice of Incorporation (NOI) along with the MOI must be completed and submitted to the CIPC
using the prescribed forms and procedures (Delport 2014, p. 26). Once these documents are
approved, the CIPC assigns a registration number and issues a certificate of incorporation, at which
point the company legally exists as a separate juristic person (Delport 2014, p. 27).
1.2 Common Law Alternatives to a Pre-Incorporation Contract
Instead of entering into a pre-incorporation contract, Suzan could consider common law
alternatives. These include: concluding the contract subject to a suspensive condition that the
company is incorporated, acting as an agent for an existing principal, entering into the contract
personally and later ceding it to the company, or delaying the contract until after the company has
been validly incorporated (Delport 2014, p. 35).
1.1 Steps to Incorporate a Company
To incorporate a company like Uniq Ltd, Mandla and Suzan must first choose the type of company
they wish to form and reserve an appropriate company name with the Companies and Intellectual
Property Commission (CIPC), although reserving a name is not mandatory (Delport 2014, p. 26).
They then need to draft a Memorandum of Incorporation (MOI), which outlines the rights, duties,
and responsibilities of both shareholders and directors, ensuring it complies with the Companies
Act (Delport 2014, p. 28).
A Notice of Incorporation (NOI) along with the MOI must be completed and submitted to the CIPC
using the prescribed forms and procedures (Delport 2014, p. 26). Once these documents are
approved, the CIPC assigns a registration number and issues a certificate of incorporation, at which
point the company legally exists as a separate juristic person (Delport 2014, p. 27).
1.2 Common Law Alternatives to a Pre-Incorporation Contract
Instead of entering into a pre-incorporation contract, Suzan could consider common law
alternatives. These include: concluding the contract subject to a suspensive condition that the
company is incorporated, acting as an agent for an existing principal, entering into the contract
personally and later ceding it to the company, or delaying the contract until after the company has
been validly incorporated (Delport 2014, p. 35).
