16.4.3 EXTERNAL COMPANY DEFINITION
An external company is defined as a foreign company which is carrying on business or nonprofit activities as the case may be in the Republic subject to s 23(2). In fact, the remaining Act does not apply to foreign companies which are not external companies at all except in two respects;
· A foreign company may transfer its registration to the Republic and if it does it becomes a domesticated company; and
· Chapter 4 of the Act which governs public offerings of securities to a foreign company whose securities are offered to the public within the Republic.
Neither a foreign company nor an external company is a company as defined in Section 1, and this then means that external companies are only bound by the provisions as affected by the new Act in terms of external companies.