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Section 23 of the Companies Act, No 71 of 2008 (Act) that came into effect on 1 May 2011, deals with the issue where a foreign company is required to register as an external company in terms of the Act
Section 45(2) of the Companies Act 71 of 2008 provides as follows: "except to the extent that the Memorandum of Incorporation of a company provides otherwise, the board may authorise the company to provide direct or indirect financial assistance to a director or a prescribed officer of the company or of a related or inter-related company, or to a related or inter-related company or corporation, or to a member of a related or inter-related corporation, or to a person related to any such company, corporation, director, prescribed officer or member, subject to sub sections (3) and (4)"
