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What is a Ring Fenced Company


A (Pty) Ltd’s company registration does not have to state the nature of their business in the MOI as was the case in the old Act. This means that all companies can trade without any restriction in any type of industry. If a company chooses to restrict the nature of its business or its powers, it is required to amend its MOI to reflect this as well as adding the letters RF (Ring Fenced) after the (Pty) Ltd. This is to serve as a warning to anyone dealing with the company that there is a restrictive condition in the MOI of the company which may have a material effect on them.

 

All NPCs company registrations have to state the nature of their business in the MOI which by its very nature is a restriction. However CIPC has ruled that it is not necessary to suffix RF after the name as NPC already warns the public that there is a restriction and the RF is therefore not required.



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