 |
LEGISLATION UPDATE
Companies Bill, 2007
Cabinet has approved the draft Companies Bill, which is intended to replace the 1973 Companies Act in its entirety, for introduction to Parliament and eventual enactment. The Bill was introduced by Trade and Industry Minister Mandisi Mpahlwa in February 2007 after a protracted development period dating back to 2002. As Parliament has shortened its session for the year in order to prepare for next year's general election, it is unknown when the Bill will eventually be tabled in Parliament. According to the Department of Trade and Industry, the objectives of the Bill are to reduce the cost of registering and maintaining a company and the regulatory burden and compliance costs for small and medium-sized businesses, while at the same time enhancing corporate governance, transparency and accountability of large and widely-held firms. It will also result in improved regulatory oversight and better redress for shareholders. Very significantly, the Bill introduces a new business rescue scheme that will facilitate the turnaround of struggling firms.
This is an important piece of legislation as it is set to revolutionise company law. Our commercial law department assists clients with the establishment of companies and close corporations, concluding and drafting of commercial agreements and advising on business and corporate law. Should you wish to speak to an expert, please feel free to contact Henning Pieterse at (021) 441 9800 or at h.pieterse@bissets.com.
|
