CAPS Grade 12
Chapter 1: Companies
Terminology A
Shares: The capital of the company divided into units called shares.
Shareholder: A holder of shares in a company and are owners
responsible for decision making.
Authorised Shares: The total number of shares the company is
authorised to sell, where the Registrar sets the limit.
Issued Share Capital: The number of issued shares multiplied by the
share issue value of each- known as ordinary shares.
Retained Shares: Bought back shares by the company that are kept
back or cancelled.
Income Tax: Value of tax the company must pay to SARS that is based
on net profits for the year.
Retained Income: profit after dividends and tax are deducted and
recorded in the Retained Earnings Account. This can be either allocated
to projects or to boost shareholder profits.
CIPC (Companies Intellectual Properties): Organisation companies must
register with.
MOI (Memorandum of Incorporation): Document issued when the
company starts which lists the rights, duties and responsibilities of
shareholders, directors and members in the company. Binding between
the company and shareholders, among shareholders and company and
directors.
Registrar of companies: responsible for enforcing the Companies Act,
done after the MOI is signed. Name, registration number, registration
certificate and the company now becomes a legal personality.
Chapter 1: Companies
Terminology A
Shares: The capital of the company divided into units called shares.
Shareholder: A holder of shares in a company and are owners
responsible for decision making.
Authorised Shares: The total number of shares the company is
authorised to sell, where the Registrar sets the limit.
Issued Share Capital: The number of issued shares multiplied by the
share issue value of each- known as ordinary shares.
Retained Shares: Bought back shares by the company that are kept
back or cancelled.
Income Tax: Value of tax the company must pay to SARS that is based
on net profits for the year.
Retained Income: profit after dividends and tax are deducted and
recorded in the Retained Earnings Account. This can be either allocated
to projects or to boost shareholder profits.
CIPC (Companies Intellectual Properties): Organisation companies must
register with.
MOI (Memorandum of Incorporation): Document issued when the
company starts which lists the rights, duties and responsibilities of
shareholders, directors and members in the company. Binding between
the company and shareholders, among shareholders and company and
directors.
Registrar of companies: responsible for enforcing the Companies Act,
done after the MOI is signed. Name, registration number, registration
certificate and the company now becomes a legal personality.
