SA's new companies' regime has taken another small step along a long road to enactment.
The Companies Bill has been tabled in the National Assembly, followed by a first, informal briefing by the Department of Trade and Industry to MPs on changes contemplated under the new dispensation.
Cabinet approved the Bill for introduction to Parliament last month. The draft law will repeal and replace the 1973 Companies Act that governs the way SA does business.
Trade and industry minister Mandisi Mpahlwa last February announced the Bill with fanfare, after a protracted development period. At the time, it was hoped to have the Bill before Parliament by October last year and made law by February this year. That did not happen. Parliament's legislative programme had the Bill down for introduction in March, but that did not happen either.
Once it does become law, the new Companies Act will completely change the way companies do business.
Mpahlwa, last February, sketched the objectives of the Bill as including reducing the cost of registering and maintaining a company, and the regulatory burden and compliance costs for small and medium businesses. At the same time, the Bill would enhance corporate governance, transparency and accountability of large and publicly held firms. It will also result in improved regulatory oversight and better redress for shareholders, he noted.
The Bill also recognises advances in technology and will legally recognise the use of electronic documentation and virtual meetings for the first time.
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