FFC IN NAME OF COMPANY, NOT CC: NO COMMISSION
Brodsky Trading 224 CC v Cronimet Chrome Mining SA (Pty) Ltd and Others (39/2016)  ZASCA 175 (25 November 2016)
An estate agent’s Fidelity Fund Certificate (FFC) is a prerequisite for the agent to operate and earn commission. The law requires further that where the agent is a company or close corporation (CC), a FFC is required for both the company or CC and the directors or members. This matter dealt with a commission claim by an agency that converted from a company to a close corporation and, at the time the sale transaction was concluded, a FFC existed for the company and director although the agency was by then a close corporation. Could the commission claim succeed on the basis that there was at least ‘substantial compliance’ with the FFC requirement?
STBB’S STSMA REFERENCE GUIDE
In this, the sixth set of notes for your STSMA Reference Guide, the details of section 7 of the Act are provided. It deals with trustees of bodies corporate.
Section 7 of the Act – Trustees of the Body Corporate
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