Promote compliance with the bill of rights as provided for in the constitution in the application of company law. If an offer falls outside this meaning, chapter iv and its onerous provisions. The act replacesd the companies act, 61 of 1973 and came into effect on 1 may 2011. Guidelines for corporate law reform may 2004, a policy document developed by the department of. Introduction although any mention of the windingup or liquidation of a business enterprise has the tendency to attract negative sentiments in the commercial world, the voluntary windingup of a solvent company remains a useful and practical tool for businesses to achieve certain defined outcomes. Section 45 of the companies act no 71 of 2008 applies to direct or indirect assistance to.
Act requires that companies falling within specific categories. Companies act no 71 of 2008 by ira epstein fluxmans inc. Appointment of directors and functions of the board of directors the companies act, 71 of 2008 as amended the companies act provides that the business and affairs of a company must be managed by or under the direction of its board of directors the board. While this provision is to be welcomed, it does however raise many questions, difficulties and uncertainties, some of which have been addressed by the court in the recent case of ex parte gore and others nno 20 3 sa 382 wcc, which handed down the first judgment on s 209 of the companies act 71 of 2008. The minister of trade and industry has, in terms of section 223 and item 14 of schedule 5 of the companies act, published the companies regulations. Amendment of the companies act regulation, 2011 102kb pdf 5 february 2014. The topic is motivated by the recent change in our company law ushered by the new companies act no. Preexisting companies on 1 may 2011 every preexisting company. Corporate in a calabash introduction running a business in south africa may be done using one of three options.
Companies act 71 of 2008 english text signed by the president assented to. Companies act 2008 notes on the guide to companies act no 71 of 2008 2 1. The act replacesd the companies act, 61 of 1973 and came into effect on 1 may. The new act and regulations became effective on 1 may. Operating the business under ones own name as a sole proprietorship.
This information should be considered in conjunction with the act itself. Amendment act or the regulations where applicable, otherwise any reference to a section in general means that it is in reference to the companies act, 2008, or the act. Companies act no 71 of 2008 western cape government. Notification in terms of section 455 of the companies act 71 of 2008 eoh holdings limited incorporated in the republic of south africa registration number 199801466906 jse share code. Voluntary windingup of solvent companies in terms of the companies act introduction although any mention of the windingup or liquidation of a business enterprise has the tendency to attract negative sentiments in the commercial world, the voluntary windingup of a solvent company remains a useful. The new companies act introduced fundamental changes to south african company law. Request pdf on may 31, 2016, piet delport and others published henochsberg on the companies act 71 of 2008 find, read and cite all the research you need on researchgate. Companies act no 71 of 2008 as amended audit requirement assessment example company name category of profit company note 1 company a public company b private company c private company d private company e private company a holding company company classification public turnover rnil number of employees none third party. Kranspoort eienaarskomitee rf npc reg no 200402332308 version 2 aug 16 page 7 of 66. A significant change from the previous act of 1973 arises in section 45 relating to financial assistance. Companies act 2008 summary of transitional arrangement. Promote the development of the south african economy by. It reveals that the provisions are in certainrespectstoofarrangingandthat,inothers,treatdirectorstooleniently. While the new act does allow a two year transitional period transitional period from the date on which the new act.
This paper entitled capital rules in terms of the companies act no. It has been announced that the new companies act no. Zae000071072 eoh or the company or the eoh group notification in terms of section 455 of the companies act 71 of 2008 notice is hereby given that, in terms of section 455. The new companies act introduced fundamental changes to.
Previously regulated by voluntary standards and norms, the. Schedule 5 of the act sets out the transitional arrangements, which are summarised as follows. Operating the business under a close corporation, as long as this close corporation was registered and in operation before 1 may 2010. Companies amendment act 3 of 2011 act to provide for the incorporation, registration, organisation and management of companies, the capitalisation of profit companies, and the registration of offices of. Companies act 71 of 2008 final linkedin slideshare. The companies act 71 of 2008 has introduced into our company law a statutory provision permitting courts to pierce the corporate veil, contained in s 209. The enactment of s724 and s5 of the companies act, no. Preexisting companies on 1 may 2011 every preexisting company, that was formed in terms of the previous.
Amendment of the companies act regulation, 2011 560kb pdf 20 august 20. Act or the old act and the 2008 companies act as the new companies act or new act. Relief under section 163 of the companies act 71 of 2008. Lets start by looking at the provision of section 45, as to who the section applies to. Guide to companies act directorno 71 of 2008s guide 20. Companies act no 71 of 2008 872kb pdf maatskappywet no 71 van 2008 685kb pdf.
Piercing the veil under section 209 of the companies act 71. Objectives of the act the new companies act seeks to encourage and promote transparency and to raise the standards of corporate governance in south africa. Companies act, 71 of 2008 series dommisse attorneys inc. Section 80 of the companies act, 71 of 2008 the companies. Feb 19, 2019 companies act, 71 of 2008 series part 5. This is a relatively new act, which came into operation on 1 may 2010 and which has replaced the 1973 companies act. On 1 may 2011, the companies act 71 of 2008 came into effect, replacing the companies act 1973 and amending the close corporations act of 1984. While this provision is to be welcomed, it does however raise many questions, difficulties and uncertainties, some of which have been addressed by the court in the recent case of ex parte. Relief under section 163 of the companies act 71 of 2008 unscrambling the omelette omar v inhouse venue technical management pty ltd journal of contemporary romandutch law, vol. Before the new companies act came into effect on 1 may 2011 and in dealing with the rendering of directors personally liable for the debt or debts of a company one relied on the provisions of the old companies act after may 2011 we now rely on two acts. Henochsberg on the companies act 71 of 2008 request pdf. Jul 10, 2019 companies act, 71 of 2008 series part 2.
The article seeks to show that the new provisions are also unsatisfactory. Guidelines for corporate law reform may 2004, a policy document developed by. Trevor manuel the then minister of finance raised concern regarding intragroup company loans without. For guidance, the developers looked to south african company law for the 21st century. This guide is intended as an easy reference, pocketsized guide for directors, shareholders. Accounting records, financial statements, financial reporting. The companies act 61 of 1973 the previous act was repealed on 1 may 2011. The companies act 71 of 2008 the act was signed into law on 8 april 2011 and its commencement date was 1 may 2011. Par value shares old act allowed par value and no par value share new act precludes creation of new authorised par value share existing par value shares remain may issue unissued par value shares from authorised capital as at 1 may 2011 if at least one such share issued new company cannot create or issue. The minister of trade and industry has, in terms of section 223 and. The simplicity and flexibility reflected in the act will contribute significantly to promote efficiency and transparency. The meaning of offer to the public forms the basis of chapter iv, as it did under the 1973 act. The companies act financial assistance background the companies act 71 of 2008 the act came into effect on 1 may 2011.
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