SAQA All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.
SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD THAT HAS PASSED THE END DATE: 

Advise on and implement appropriate forms of business enterprises 
SAQA US ID UNIT STANDARD TITLE
116095  Advise on and implement appropriate forms of business enterprises 
ORIGINATOR
SGB Legal Education and Training 
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
-  
FIELD SUBFIELD
Field 08 - Law, Military Science and Security Justice in Society 
ABET BAND UNIT STANDARD TYPE PRE-2009 NQF LEVEL NQF LEVEL CREDITS
Undefined  Regular  Level 7  Level TBA: Pre-2009 was L7  8 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Passed the End Date -
Status was "Reregistered" 		 2018-07-01  2023-06-30  SAQA 06120/18 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2024-06-30   2027-06-30  

In all of the tables in this document, both the pre-2009 NQF Level and the NQF Level is shown. In the text (purpose statements, qualification rules, etc), any references to NQF Levels are to the pre-2009 levels unless specifically stated otherwise.  

This unit standard does not replace any other unit standard and is not replaced by any other unit standard. 

PURPOSE OF THE UNIT STANDARD 
This unit standard is aimed at understanding the various types of business enterprise.

The qualifying learner will be able to:
  • Describe the various forms of business entities, advise clients on the appropriateness of choice, draft the relevant documents / agreements and advise on VAT implications.
  • Advise and assist a client when entering a partnership or form a close corporation or company.
  • Convert companies/close corporations.
  • Explain company secretarial work.
  • Explain trusts. 
    		•

    LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
    Learners registering for this unit standard will have demonstrated competence in legal knowledge at NQF level 7 as contained in a recognised law degree like B Proc or LLB or any other qualification recognised as equivalent to such a law degree in terms of legislation as indicated in the notes to the qualification. This assumed learning is listed in paragraph 4 of the qualification "Post graduate certificate in Attorneys Practice". 

    UNIT STANDARD RANGE 
    Range statements are included with specific outcomes as necessary. 

    Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Describe the various forms of business entities, advise clients on the appropriateness of choice, draft the relevant documents / agreements and advise on VAT implications. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    List and explain the criteria, which can be implemented to assist one in making the choice of the appropriate form of business entity. 

    ASSESSMENT CRITERION 2 
    Identify and distinguish the characteristics, advantages and disadvantages of the sole proprietorship, partnership, business trust, close corporation, company and share block company. 

    ASSESSMENT CRITERION 3 
    Advise the client of the most suitable type of business entity for his/her particular purposes. 

    ASSESSMENT CRITERION 4 
    Advise a client on the implications of labour legislation and tax implications. 

    ASSESSMENT CRITERION 5 
    Indicate the initial legal formalities that every entity operating a business has to comply with before commencing business. 

    ASSESSMENT CRITERION 6 
    Indicate when a trading license will be required. 

    ASSESSMENT CRITERION 7 
    Indicate how financial difficulties of the business entity will be dealt with. 

    ASSESSMENT CRITERION 8 
    Draft a simple partnership agreement. 

    ASSESSMENT CRITERION 9 
    Reserve a close corporation and /or company name. 

    ASSESSMENT CRITERION 10 
    Register a special resolution to change a company's name and prepare the relevant documents. 

    ASSESSMENT CRITERION 11 
    Prepare all the documents necessary for the registration of a company with share capital. 

    ASSESSMENT CRITERION 12 
    Draft and complete the documents that have to be lodged for the registration of a company. 

    ASSESSMENT CRITERION 13 
    Prepare all the necessary documentation for registration of a close corporation, inclusive of obtaining the auditor's consent. 

    ASSESSMENT CRITERION 14 
    Draft the documentation for the change of name or relationship of a close corporation. 

    ASSESSMENT CRITERION 15 
    Draft the necessary documentation for the conversion of companies from public to private company, to a share block company, a company limited by guarantee to a company with share capital and of a company into a close corporation and from a close corporation to a company. 

    ASSESSMENT CRITERION 16 
    Calculate the stamp duties payable in respect of the power of attorney, CM5, certificate to commence business and the memorandum of association. 

    ASSESSMENT CRITERION 17 
    Draft a trust deed. 

    ASSESSMENT CRITERION 18 
    Explain when a person, natural or juristic, will have to register as a vendor for VAT purposes. 

    SPECIFIC OUTCOME 2 
    Advise and assist a client when entering a partnership or form a close corporation or company. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    Draft a simple partnership agreement. 

    ASSESSMENT CRITERION 2 
    Indicate when a partnership will be bound by a contract, which was concluded on behalf of the partnership. 

    ASSESSMENT CRITERION 3 
    Explain the principle of "mutual mandate" in a partnership. 

    ASSESSMENT CRITERION 4 
    Advise a client in forming a close corporation or a company as per the criteria listed below

    Generally
  • Compile a comparison that will indicate the distinction between a private company and a close corporation.
  • Give an explanation of the working and organization of the Companies' Office.
  • Advise a client as to the desirability of the proposed company or close corporation name, the reservation thereof and the effect of the registration of a defensive name.
  • Name the guidelines to be borne in mind when choosing a name.
  • Explain the procedure to be followed in the reservation of a name.

    For companies
  • Explain how to register a special resolution to change a company's name and prepare the relevant documents.
  • List the information necessary for the purpose of completing the company registration documents, with regard also to each subscriber to the memorandum and articles of association and to each director.
  • Prepare all the documents necessary for the registration of a company with share capital.
  • List the documents that have to be lodged for the registration of a company.
  • Calculate and give the amount of stamp duties payable in respect of the power of attorney, CM5, certificate to commence business and the memorandum of association.
  • Indicate under which circumstances a pre-incorporation contract will bind the company subsequently incorporated.
  • List the best-known class of shares.
  • Explain what a pre-incorporation contract is and how it should be dealt with when registering a company.
  • Explain the requirements of section 37, 38 and 39 of the Companies Act, 61 of 1973
  • Explain the requirements of section 226 of the Companies Act, 61 of 1973 regarding the prohibition of loans to, or security in connection with transactions by, directors and managers.
  • Explain the requirements of Section 228 of the Companies Act, 61 of 1973 regarding the disposal of the undertaking of or the greater part of assets of the company.
  • Indicate the liability of directors and others for fraudulent conduct in terms of section 424 of the Companies Act, 61 of 1973.

    For close corporations
  • Explain how a close corporation is formed.
  • List the information needed for the purpose of completing the registration documents for a close corporation.
  • Prepare all the necessary documentation for registration of a close corporation, inclusive of obtaining the auditor's consent.
  • List the documents that have to be lodged for the registration of a close corporation.
  • Explain the procedure to be employed if there is a change of name or relationship of the close corporation.
  • Indicate when payment may be made or financial assistance given for the acquisition of a member's interest by the close corporation.
  • Indicate access to association agreements of close corporations.
  • Indicate when sections 37 and 226 of the Companies Act 61 of 1973 will apply to close corporations.
  • Explain the power of a member of a close corporation to bind the corporation and when section 54 of the Close Corporation Act, 69 of 1984 does not apply.
  • Indicate the liability of persons for reckless or fraudulent carrying-on of business of the close corporation.
  • Explain the powers of court in case of abuse of the separate personality of a close corporation.
  • Explain the effect of Section 332 of the Criminal Procedure Act, 51 of 1977 on companies. 
    		•

    SPECIFIC OUTCOME 3 
    Convert companies/close corporations. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    Explain the procedure to be followed and the requirements to be met to effect the conversion from public to private company, to a share block company, a company limited by guarantee to a company with share capital and of a company into a close corporation and from a close corporation into a company. 

    SPECIFIC OUTCOME 4 
    Explain company secretarial work. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    Identify the function and duties of the company secretary 

    ASSESSMENT CRITERION 2 
    Advise the client in regard to the initial secretarial work, which is required after incorporation of the company. 

    ASSESSMENT CRITERION 3 
    List the resolutions, which must be taken at the first director's meeting after incorporation of the company. 

    ASSESSMENT CRITERION 4 
    List the statutory registers, which must be opened and maintained. 

    SPECIFIC OUTCOME 5 
    Explain trusts. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    Distinguish between the various types of trusts. 

    ASSESSMENT CRITERION 2 
    Identify the main parties to a trust. 

    ASSESSMENT CRITERION 3 
    Define the concept "trust" and explain the nature thereof. 

    ASSESSMENT CRITERION 4 
    Define "trust property". 

    ASSESSMENT CRITERION 5 
    List the registration requirements for a trust. 

    ASSESSMENT CRITERION 6 
    Indicate how and by whom a trust deed can be varied. 

    ASSESSMENT CRITERION 7 
    Explain when one would make use of a trust morti's causa and when one would make use of a trust inter vivos. 

    ASSESSMENT CRITERION 8 
    Explain the most important features of the Trust Property Control Act 57 of 1988. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
  • Anyone assessing a learner or moderating the assessment of a learner against this qualification must be registered as an assessor with the POSLEC SETA ETQA and / or any other body with whom a mou was entered into.
  • Any institution offering learning that will enable achievement of this qualification must be accredited as a provider through the POSLEC SETA ETQA and / or any other body with whom a mou was entered into by SAQA.
  • The POSLEC SETA ETQA and / or any other body with whom a mou was entered into will oversee assessment and moderation of assessment according to the moderation guidelines in the relevant competency and the agreed procedures of the POSLEC SETA ETQA and / or any other body with whom a mou was entered into.
  • Moderation must include both internal and external moderation of assessment at exit points of the qualification, unless ETQA policies specify otherwise. Moderation should encompass achievement of the competence described both in individual unit standards, exit level outcomes as well as the integrated competence described in the qualification.
  • Anyone wishing to be assessed against this competency may apply to be assessed by any assessment agency, assessor or provider institution that is accredited by the POSLEC SETA ETQA and / or any other body with whom a mou was entered into. 
    		•

    UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
    Demonstrated knowledge and understanding:
  • The nature and functioning of legal organizations and the legal system.
  • Ethical and professional conduct.
  • Problem solving techniques.
  • Values such as fairness, justice, accountability, etc. 
    		•

    UNIT STANDARD DEVELOPMENTAL OUTCOME 
    Personal development. 

    UNIT STANDARD LINKAGES 
    N/A 


    Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO IDENTIFYING 
    Identifying and solving problems. 

    UNIT STANDARD CCFO WORKING 
    Working effectively with others as a member of a team, group, organisation or community. 

    UNIT STANDARD CCFO COMMUNICATING 
    Communicate effectively. 

    UNIT STANDARD CCFO DEMONSTRATING 
    Demonstrating an understanding of the world as a set of related systems. 

    UNIT STANDARD CCFO CONTRIBUTING 
    Contributing to the personal development of learners and the society and economy, by being culturally sensitive and by participating as responsible citizens in the life of local, national and global communities. 

    UNIT STANDARD ASSESSOR CRITERIA 
    N/A 

    REREGISTRATION HISTORY 
    As per the SAQA Board decision/s at that time, this unit standard was Reregistered in 2012; 2015. 

    UNIT STANDARD NOTES 
    N/A 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Elective  48920   National Certificate: Attorneys Practice  Level 7  NQF Level 07  Passed the End Date -
    Status was "Reregistered"     		 2023-06-30  SAS SETA 


    PROVIDERS CURRENTLY ACCREDITED TO OFFER THIS UNIT STANDARD: 
    This information shows the current accreditations (i.e. those not past their accreditation end dates), and is the most complete record available to SAQA as of today. Some Primary or Delegated Quality Assurance Functionaries have a lag in their recording systems for provider accreditation, in turn leading to a lag in notifying SAQA of all the providers that they have accredited to offer qualifications and unit standards, as well as any extensions to accreditation end dates. The relevant Primary or Delegated Quality Assurance Functionary should be notified if a record appears to be missing from here.
     
    1. LAW SOCIETY OF SOUTH AFRICA 


    All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.