Document background
A Resolution of Sole Shareholder is a crucial corporate governance document used in South African companies where all shares are held by a single shareholder. This document is required whenever the sole shareholder needs to make formal decisions about the company's affairs, as prescribed by the Companies Act 71 of 2008. Common scenarios requiring such resolutions include appointing or removing directors, approving annual financial statements, authorizing significant transactions, changing the company's constitution, or declaring dividends. The resolution must be dated, signed by the sole shareholder, and kept in the company's records. Depending on the nature of the decision, some resolutions may need to be filed with the Companies and Intellectual Property Commission (CIPC). The document serves as evidence of corporate decision-making and helps maintain proper corporate governance in single-shareholder companies.
