1.1
Statement: Legal entities like cooperatives, close corporations and private companies are already
regulated under their own legislation and are not registered under the NPO Act. The NPO Act is
mainly for voluntary associations, trusts and non-profit companies.
Answer: TRUE
Reason:
These entities are governed by separate laws such as the Companies Act and Co-operatives Act,
while the NPO Act applies specifically to voluntary associations, trusts, and non-profit companies
that choose to register.
1.2
Statement: Registration as an NPO does not mean the organisation is accredited. It simply means it
is formally recognised and must comply with certain reporting requirements.
Answer: TRUE
Reason:
NPO registration only provides formal recognition by the Department of Social Development and
requires compliance with reporting duties; it does not certify quality or provide accreditation.
1.3
Statement: The study guide makes it clear that the regulation and recognition of paralegals is still
developing, which shows that there is no fully established formal regulatory framework under the
Legal Practice Act yet.