Contrasting Approaches on Financial Assistance between the UK and South Africa

摘要

Every member of a company contributes to the company's capital to a limited extent as defined by their shareholding. This could be done in the course of the company's business or in the process of winding up the company. The law requires that the capital contributed by members should not be returned and no relief shall be granted to a member by the company for any liability arising from the purchase of the company's shares except by way of an authorised reduction of capital. At common law, the distribution of funds is, in a broad sense, only allowed from the company's profits where the dividend is duly declared.