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Legal Snippets

Richards Attorneys

FAILING TO DISCLOSE OR PUBLISH YOUR COMPANY'S STATUS ON CORRESPONDENCE AND ELECTRONIC COMMUNICATION.

I am often faced with correspondence sent by directors or representatives of companies who neglect to comply with corporate governance. When a company communicates in writing, it should be clear from the contents of the communication that it is sent by a company, with full reference to it's registered name, registration number. This goes much further than just a letterhead or email. It also includes quotes, invoices and receipts as it all forms part of your enterprizes communication which enables a third party to identify the fact that they are dealing with a Legal Persona or Entity. Failing to do so, constitutes misleading information.

Failing to comply with this requirement also constitutes an offense, and if a third party is prejudiced as a result of the overview, a court may be approached on an application and may hold the director or author of such letter personally liable.

If you are in doubt about the requirements, consult with your attorney to make sure that your understanding of section 32 of the Companies Act is correct.

Legal Snippets

Richards Attorneys

This boutique law firm renders its services to private individuals and small businesses. Nicolene Richards, a General Practise Attorney with over thirty years of experience, established her firm in 2009 and offers her legal services to clients in Gansbaai and the surrounding areas. The firm speciali...

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