What happens if a member of a close corporation dies

This could also be the case when the key person in a business dies. In this article common challenges of which business owners should be aware of, are discussed briefly. Any business can be operated in one of a number of business entities, e. Precautionary measures should be taken to ensure reasonable continuity of the business in the event of death, unless closure of the business is desired.

Continuity problems occur mostly in the case of one-man businesses, close corporations and private companies in which the deceased was the only member and shareholder respectively. Subscribe to our Newsletter. Estate Agent Training. Your nickname:. Email address:. It's Lockdown - Not Shutdown. Antenuptial Contracts. Conveyancing Attorneys. Notarial Services. I am the heir of a property registered in a close corporation. Please advise. Participation is voluntary.

I was bequeathed the property and subsequently the property has been sold by the Executor. The property was the only asset of the Close Corporation.

The Executor is being very cagey about the members share in the cc and after I prompted him to advise me if he has prepared the first Liquidation and Distribution account to be presented to the Master of the High Court, his reply was that he is still busy with it but the dividends if the close corporation must be paid out before he does the submission to the Master. He is withholding information as to who actually gets the dividends because the way I see it the dividends come from the profit from the sale of the property and then should get paid back into the Estate which in my mind should then come to me?

Would this be correct? SharJudith, sorry to just butt in Although the devil is always in the detail, I am not sure how the deceased person could bequeath a property to you that he didn't own. His members interest could have been bequeathed, but not the assets of the close corporation. July 28th, 0 Comments. May 31st, 0 Comments. April 30th, 0 Comments. Leave A Comment Cancel reply Comment.

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