Department of Trade and Industry
The trade and industry department has published the Draft Companies Amendment Bill on its website. In an accompanying statement, the department outlined the reasons why the amendment bill was necessary.
The Companies Bill had been signed into law by then president Motlanthe on 9 April 2009. Regulations to the Act had subsequently been published for public consultation in July 2009.
“During the consultation process, sections of the Act were found to be imbued with errors, while some of the regulations were considered ultra vires (beyond the powers), due to their not empowering provisions in the Act, nor enabling the minister to issue them in order to achieve the Act’s objectives”.
Amendments were therefore required to rectify the provisions in question and ensure that the Act could be administered in a proper manner.
At the end of June 2010, trade and industry minister, Rob Davies, expressed his desire that the new Act should come into effect as soon as possible. The current target date for implementation is October.
In particular, the minister highlighted the importance of the business rescue provisions. He described the new legislation as a significant improvement on the existing Act.
The revised draft regulations are also to be re-released for public comment.
The amendment bill is still to be tabled in Parliament.
The department gave the assurance that it would be subject to due process including a thirty day public comment period involving public hearings.
Sabinet Cape Town Office
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