CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. South African Companies Act Signed

South African Companies Act Signed

by Lorys Charalambous, LawAndTax-News.com, Cyprus

22 April 2011


South Africa’s President Jacob Zuma has signed the Companies Amendment Act of 2010 into law and, together with the Companies Regulations and all other relevant documents, it will come into effect on May 1, 2011.

"The new Companies Act is a major piece of legislation and reform, which has a number of features to it (and) will certainly improve the environment for business operation in South Africa," said Trade and Industry Minister Rob Davies.

"There is a reduction, particularly on the regulatory burden on small and micro enterprises. The requirement for financial reporting for small companies has been reduced considerably, in that they do not have to produce audited financial statements, but will need to have financial reporting at an appropriate low level," he added.

A major innovation is the introduction of a business rescue scheme, which means that instead of companies going into major judicial management as they do now - which is almost invariably a route to an eventual bankruptcy - a rescue process will be initiated. Davies confirmed that "creditors can be held at bay while stakeholders work to rescue the company, which is a major and very important innovation”.

The new Act does not allow registration of close corporations (CCs), and therefore none will be registered after the Act comes into legal force. However, CCs that are already in the system will remain active indefinitely, unless they choose to convert into the corporate regime of the Companies Act of 2008.

The signing of the Companies Amendment Act also implies that the Companies and Intellectual Property Commission (CIPC) will be open for business as of May 1. The Act gives the CIPC powers to investigate companies and to ensure that they comply with the legislation.

TAGS: South Africa | compliance | small business | business | law | accounting | legislation | micro business | financial reporting | regulation | Africa

To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »