Is a municipality a juristic person?

Is a municipality a juristic person?

A municipality is an organ of state, and as such is subject to a legislative and regulatory framework in the conduct of its administrative affairs. A municipal entity is a separate juristic personality from the municipality.

Can family members be on a non-profit board in South Africa?

Regarding family involvement as board members, the rules are as follows: NPO Directorate allows a maximum of two related board members; SARS requires at least three board members who are not related to one another; and. Donors generally like the unrelated board members to be in the majority.

What is a municipal entity?

Definition. Municipal Entity. A polity that typically represents a city, township, or other administrative subdivision having corporate status and powers of self-government or jurisdiction.

What is a Section 21 company in South Africa?

Section 21 of the Companies Act 61 of 1973 allows for a ‘not-for-profit company’ or ‘association incorporated not for gain’. Section 21 companies resemble business oriented (for profit) companies in their legal structure, but do not have a share capital and cannot distribute shares or pay dividends to their members.

Is a municipality an organ of state?

The municipal institution is an organ of state, which exercises legislative and executive powers. Municipal powers are exercised in a system of co-operative government which allows the three spheres of government to work together effectively.

Who is the accounting officer of a municipality?

municipal manager
Accounting Officer means the municipal manager appointed in terms of Section 60 of the Municipal Finance Management Act.

Can family members be on the board of directors?

Can my board of directors contain family members? Yes, but be aware that the IRS encourages specific governance practices for 501(c)(3) board composition. In general, having related board members is not expressly prohibited.

What is the difference between an NPO and NGO in South Africa?

What is the difference between a NGO and an NPO? An NPO is a Non-Profit Organisation while an NGO is simply a widely used term for various organisations that are not part of government, but focus on development, environment and human rights.

What is a municipal advisor?

Section 15B of the Securities Exchange Act defines the term “municipal advisor” to mean a person that (i) provides advice to or on behalf of a municipal entity or obligated person with respect to municipal financial products or the issuance of municipal securities, including advice with respect to the structure, timing …

Does a section 21 company have shareholders?

Section 21 companies resemble business oriented (for profit) companies in their legal structure, but do not have a share capital and cannot distribute shares or pay dividends to their members.

What’s the difference between NPO and NPC?

An NPO and NPC have similar objectives. The main difference between an NPO and NPC is the manner of formation. An NPO is formed in terms of the NPO Act and requires a constitution. On the other hand, an NPC is formed in terms of the Company Act and requires and MOI (Memorandum of Incorporation)

What is the legal nature of the municipality?

The nature and legal character of municipal governments are specifically entrenched as unique democratic public institutions with specific powers and functions in specific areas which involve not only political structures but also the local community and the administration of the particular authority.

Does section 77 apply to directors only?

It is important to note that the Act does not limit the application of section 77 only to directors as such.

Can a director be held personally liable under the Companies Act?

DIRECTORS WHO ARE KNOWINGLY A PARTY TO PROHIBITED CONDUCT Should a director not proceed in this manner, he or she may be held personally liable in terms of section 77(3)(b) as read with section 22(1) of the Act, subject of course to the court’s discretion to excuse such a director in terms of section 77(9) of the Act.

What is Section 22(1) of the Companies Act?

Section 22(1) of the Act states that a company must not carry on its business recklessly, with gross negligence, with intent to defraud any person, or for any fraudulent purpose.

What is Section 77(3)(b) of the Companies Act?

Section 77(3)(b) of the Act, as read with section 22 of the Act, penalises and holds directors personally liable to the company for any loss incurred through knowingly carrying on the business of the company recklessly, with gross negligence, with intent to defraud any person or for any fraudulent purpose.