The new Companies Act like the CPA has been implemented and only after the fact, people are really starting to realise the impact this will have on business. There hasn’t been a major overhaul of the Companies Act for nearly 40 years. It is the single most important piece of legislation affecting business to be passed in decades, says those in the know– and yet few business owners and directors are fully aware of its implications.
“In the wake of scandals like Enron, there has been growing global awareness that since companies have such profound impacts on economies, they owe a duty to society as a whole,” comments attorney Carl Stein. “The new Companies Act grants new rights and remedies to a range of stakeholders, including employees, creditors, suppliers and minority shareholders – who used to have fewer rights than a minor child”. (HRfuture)
Some of the key changes of the Act include:
- There are new liability rules for directors.
- The Act creates new rules for the incorporation, registration, organisation and management of companies in South Africa. It will apply if you want to register, administer or wind-up a company.
- The Act now constitutes legislation which has a direct bearing on the boundaries and extent of obligations on senior employees within a company.
- The Close Corporations Act is abolished and all Close Corporations are henceforth deemed to be companies in terms of the Companies Act
Is the new companies act going to impact your business? Have you made plans to ensure your company is able to navigate this new piece of legislation? Do you have qualified finance employees to help you manage these changes? If not, contact Communicate Personnel we are a specialist Financial recruitment agency.
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