The Department of Trade and Industry (DTI) has started a roadshow to popularise and debate the Companies Bill that will change the South African business landscape once it becomes law next year.
One change that will affect the ICT industry is the concept of "public interest companies". This will allow government to declare certain companies or industries subject to extra scrutiny. DTI has in mind those companies that have a disproportionate effect on the economy or environment, even if they are private or closely held companies. It is likely SA's telecommunications companies and perhaps Internet service providers will fall into this category.
The DTI campaign starts this morning with a two-day talk-shop outside Pretoria. Interested parties have until today to make initial comments on the Companies Bill, which was three years in the making.
Government's new law will replace the 1973 Companies Act and legislation dealing with close corporations. The DTI says the Bill represents a significant departure from the existing statutes and aims to modernise the regime under which South African businesses operate.
The Bill, when enacted, also promises to reduce the cost of registering and maintaining a company. It also aims to reduce the regulatory burden and compliance costs on small and medium businesses, while enhancing corporate governance, transparency and accountability of large and widely-held firms.
The DTI also promises the draft law will result in improved regulatory oversight and better redress for shareholders and employees, a step welcomed by many after the Fidentia scandal. It also introduces a business rescue scheme to facilitate the turnaround of struggling firms.
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