The South African Department of Trade and Industry (DTI) is recommending May 1 as the implementation date of the new Companies Act. In a statement, the department said it had taken note of the high volume of enquiries regarding the implementation date of the Act that intends to create an environment that is conducive to economic growth and development.
The Act provides enhanced protection for minority shareholders, as well as streamlined processes to register companies and preventing company hijackings, the state BuaNews agency says. Last year, Minister Rob Davies postponed the implementation date of Act that was meant to come into effect Friday.
“In terms of the Act, the implementation date shall be the date on which the Act is proclaimed. The DTI can confirm that after all the technical processes required have been completed. It has recommended to the Presidency to provide May 1 as implementation date,” said the department. According to the department, the parliamentary process to adopt the Bill was only finalised on March 24 following consultative processes that took slightly longer than anticipated.
Earlier on Thursday, the department said the Act was going through the necessary approval processes for President Jacob Zuma’s assent. “The DTI is of the view that the Presidency must be allowed to apply its mind sufficiently in processing the Companies Amendment Bill before signing it into law,” it said. The department reiterated that all the necessary systems were on track for the processes necessary for the operation of the Companies and Intellectual Property Commission, including the appointment of the Commissioner and Deputy Commissioner, BuaNews added.
Meanwhile, the Presidency said President Jacob Zuma has not yet received the Companies Amendment Bill for processing.