This distinction becomes particularly important as businesses grow. If a company owns an asset, selling shares in the company and selling that asset are two different transactions — understanding the difference helps entrepreneurs think properly about business ownership and investment.
Source: Companies Act 71 of 2008
Frequently Asked Questions
Can shareholders personally use company property however they want?
No — company assets belong to the company and should be dealt with according to the company's legal and accounting framework.
Can a company sell its own assets?
Yes, subject to applicable law, contracts and internal authority requirements.
Is company property automatically the personal property of the shareholders?
No — the company and shareholders are legally separate.