Not-for-profit Corporation Website Links For
Corporation
 

Information About

Not-for-profit Corporation




Examples of not-for-profit organizations that have been formed in the past include the Electricity Supply Commission of South Africa ( Eskom ) and the New Zealand Electricity Department (NZED). Both of these organizations were set up to develop the Electricity Generation and Electric Power Transmission needs of the respective countries by statute (The Electricity Act in each country).

One of the problems experienced by such corporations is their inability to fund growth from profits in the way that conventional businesses can. In the case of Eskom, the dilemma was solved by establishing a capital development fund, contributions to which were deemed to be costs and the investment of the fund was restricted to the loan stock (bonds) of Eskom. In New Zealand, the pricing of Electricity was regulated to allow for the collection of a capital contribution. Ultimately the respective governments amended the legislation to bring the organisations into the normal commercial fold.

More generally, the term not-for-profit corporation may include any Non-profit Organization , since these organizations are generally incorporated (often as Societies, Associations, Trusts, etc.).


IN SOUTH AFRICA

Association not for gain incorporated in terms of Section 21 of the Companies Act.


SEE ALSO




EXTERNAL LINKS