Sale of a farm by a company or close corporation

When a farm is registered in the name of a company or a close corporation and the shareholder of the company or the member of the close corporation wants to sell any portion of such interest, they will first have to apply to the state to obtain a waiver. Even if the shareholder or member wants to sell only 1% of his/her interest to another person, the shareholder or member must first obtain a waiver.The controlling interest in a company or close corporation that owns a farm must be held by a Namibian citizen. The Agricultural Land Reform Act requires an affidavit by the new owner as filed at the deed office with the title deed. In the affidavit the shareholder or member with the controlling interest declares under oath that he or she is a Namibian citizen and also declares who is the member with the minority interest. Please be careful when making this declaration under oath, as section 59 of the Agricultural Land Reform Act stipulates that you may not acquire or hold an interest on behalf of a foreign national as a nominee or owner. The act further stipulates that if you make a statement knowing it to be false, you will be guilty of an offence and on conviction you will be liable to a fine not exceeding N$20 000 or to imprisonment for a term not exceeding five years, or both.Remember, even if you are only selling shares or a member’s interest and there is no actual sale and transfer of agricultural land involved, you will still be required to make the declaration under oath in terms of the act. Finally I would like to explain what the meaning of a pre-emptive or preferent right is. The moment a person enters into a written contract for the sale of his farm or the shares or member’s interest of the entity that owns the farm, the pre-emptive or preferent right kicks in and the state has the right to purchase the farm from the owner.In practice a lawyer will prepare an agreement for the sale of a farm or the shares or the member’s interest, but we make the agreement subject to the state issuing a waiver certificate within a period of time. In other words, the sale to the purchaser can only go ahead provided the state has issued a waiver certificate. The waiver certificate states that the government does not intend purchasing the agricultural land at the time of the offer. A waiver certificate is only valid for 12 months from the date of issue, then it lapses.

Sale of a farm by a company or close corporation

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Republikein 2025-05-08

Meld asseblief aan om kommentaar te lewer

Sale of a farm by a company or close corporation

Kommentaar

Republikein 2025-05-08

Meld asseblief aan om kommentaar te lewer

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