The conviction of Durban businessman Schabir Shaik on two charges of corruption and one of fraud on Thursday does not necessarily signal the closure of his Nkobi group of companies, even though all of its subsidiaries were co-accuseds in the case.

"According to the Company Act, a company is a separate legal entity from the natural person/s who make up the directorship of the company," said legal expert Robin Sewlall, based at the Durban Institute of Technology.

He said Shaik's convictions, which were all linked to irregular financial dealings with Deputy President Jacob Zuma, meant that he could no longer serve as a director of a company, even if he was not given a prison sentence.

Sewlall said the Nkobi Group could be fined. If the payment of this fine was not within its means this could lead to its closure.

Someone else could take over the running of the company but Shaik's convictions were a "death-knell" to Nkobi. "I don't think anyone would want to take over that kind of company," said Sewlall.

He said Nkobi might decide to fulfil contracts already underway or already signed.

"The point of the matter is, does the company it has done work for want to continue this tenuous relationship, which would largely depend on the terms of the outside company."

After the start of Shaik's trial in October last year, the national department of transport extended by another five years the contract of Nkobi and its partners to manufacture South Africa's drivers' licences.

With acknowledgement to Sapa.