Companies amendment bill gets nod

Johannesburg - The companies amendment bill has been adopted by the portfolio committee on trade and industry, the department of trade and industry said on Friday.

"It is unacceptable and unjustifiable that a progressive country such as SA, which has the most progressive constitution in the world, still operates on a legislation passed in 1973," the dti said in a statement.

According to professional service firm KPMG, the object of the bill is "to correct numerous errors and inconsistencies in the New Companies Act and to address and facilitate a number of issues which were not or could not be adequately dealt with in the draft regulations".

The bill would bring South Africa in line, or even beyond, international trends, the dti said.

Changes included enhancing protection for minority shareholders, particularly black economic empowerment shareholders.

It also makes provision for the early turnaround of companies in distress which could help save jobs.

The new law should cut red tape in registering a company by cutting down on the number of processes required.

The dti said it also provides for improvement of enforcement powers to detect attempts to hijack companies.

The dti does not want any more delays in implementing the legislation.

"... any further delays in implementing this legislation will undermine the drive to transform this country and its systems, and will derail any attempts to unlock its potential as a destination for investment."

The bill would go through the parliamentary process in all relevant houses of Parliament and then be sent to the president to assent, the dti said.