This is one reason companies can be used as long-term business vehicles. A founder can eventually sell shares, bring in investors or transfer ownership without necessarily having to create an entirely new company — the company's contracts, assets and history remain associated with the same legal entity.
Source: Companies Act 71 of 2008
Frequently Asked Questions
Does selling shares automatically close a company?
No — a change in shareholders does not itself terminate the company's existence.
Can a company have more than one shareholder?
Yes — the number and structure depend on the type of company and its governing documents.
Why would an entrepreneur bring in a new shareholder?
A new shareholder may provide capital, expertise, connections or strategic value.