COMPANIES ACT: RAFT OF AMENDMENTS IN FORCE

COMPANIES ACT: RAFT OF AMENDMENTS IN FORCE

• 27 December 2024
• New Legislation
• SA Legal Academy

Please note: On 7 January 2025, the Department of Trade, Industry & Competition issued a media statement welcoming the move. 

According to presidential proclamations gazetted on 27 December 2024, the Companies 2^nd Amendment Act, 2024, is now in force, along with several sections of the 2024 Companies Amendment Act.

The Companies 2^nd Amendment Act extends the time bar set out in section 162(2) of the Act in terms of which applications are made for a court order declaring a company director delinquent or under probation.

The Companies Amendment Act is expected to:

• remove certain obstacles to legitimate business activity
• facilitate greater ‘equity between directors and senior management on the one hand, and shareholders and workers on the other hand’ (among other things by ensuring greater transparency regarding the disclosure of senior executive remuneration and its ‘reasonableness’), and to
• address various policy matters affecting social and ethics committees.

The Government Gazette notice listing commenced sections of the Companies Amendment Act is somewhat confusing. However, it appears that the following sections are now in force:

• the definition of securities
• section 9, amending section 40 of the principal statute (consideration for shares)
• section 10, amending section 45 of the principal statute (loans or other financial assistance to directors)
• section 11, amending section 48 of the principal statute (company or subsidiary acquiring company’s shares)
• section 12, amending section 61 of the principal statute (shareholders meetings)
• section 13, amending section 72 of the principal statute (board committees)
• section 14, amending section 90 of the principal statute (appointment of auditor)
• section 15, amending section 95 of the principal statute (public offerings of company securities)
• section 17, amending section 135 of the principal statute (business rescue and compromise with creditors, post-commencement finance)
• section 18, amending section 160 of the principal statute (disputes concerning reservation or registration of company names)
• section 20, amending section 167 of the principal statute (voluntary dispute resolution, resulting in consent order)
• section 21, amending section 194 of the principal statute (appointing a Companies Tribunal), and
• section 23, amending section 204 of the principal statute (Financial Reporting Standards Council functions).

Please click the links below for more information:

• presidential proclamations
• Companies 2^nd Amendment Act
• Companies Amendment Act

Published by SA Legal Academy Policy Watch

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