Section 21 Company

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This refers to the specific section of the companies act under which "Associations Not For Gain" may register.

The following description is posted on the website of the Companies and Intellectual Properties Commission[1]

"These are companies that are registered to provide services and do not intend to make, or to be judged by, the profits that they make. These "Associations Not For Gain" are often funded by donations and foreign funding. Generally they provide services to various "communities" such as children's feeding schemes, organisations that take care of AIDS orphans, religious and charitable organisations ect [sic].

These companies are registered in terms of Section 21 of the Companies Act and are often referred to as "Section 21 Companies". A Section 21 company must have a minimum of 7 members and at least 2 directors."

The term "Article 21 Company" is also used on occasion by some companies.

Many theatre, film, arts, community and educational associations in South Africa (e.g. those falling in the broad rubrics of Applied Theatre, Theatre in Education, Theatre for Development, Community Theatre, etc.) tend to register as Section 21 Companies.


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