Johannesburg - President Jacob Zuma
has signed the Companies Amendment Act of 2010 into law after seven years in the making, the department of trade and industry said on Wednesday.
“The Department of Trade and Industry (the dti) is delighted to announce that President Jacob Gedleyihlekisa Zuma has signed the Companies Amendment Act of 2010 into law,” it said in a statement.
“The signing of the Companies Amendment Act, the Proclamation and the President’s minute puts into legal force the Companies Act of 2008 on 1 May 2011.”
The act was meant to be implemented on April 1, but was delayed at the last minute. It replaces the Companies Act 71 of 2008.
“The new Companies Act is a major piece of legislation and reform which has a number of features to it which will certainly improve the environment for business operation in South Africa,” Trade and Industry Minister Rob Davies
“There is a reduction particularly on the regulatory burden on small medium 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.”
The act would also introduce a business rescue scheme, allowing companies to rather go through a rescue process than judicial management which tends to lead to bankruptcy.
“Then creditors can be held at bay while stakeholders work to rescue the company which is a major and very important innovation,” he said.