Ncompanies act 71 of 2008 pdf

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. 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. 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. Previously regulated by voluntary standards and norms, the. Promote the development of the south african economy by. Schedule 5 of the act sets out the transitional arrangements, which are summarised as follows. It has been announced that the new companies act no. The companies act financial assistance background the companies act 71 of 2008 the act came into effect on 1 may 2011. 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.

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 act and regulations became effective on 1 may. 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 unscrambling the omelette omar v inhouse venue technical management pty ltd journal of contemporary romandutch law, vol. Jul 10, 2019 companies act, 71 of 2008 series part 2. The article seeks to show that the new provisions are also unsatisfactory. Companies act 2008 notes on the guide to companies act no 71 of 2008 2 1. Piercing the veil under section 209 of the companies act.

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. 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. While the new act does allow a two year transitional period transitional period from the date on which the new act. It reveals that the provisions are in certainrespectstoofarrangingandthat,inothers,treatdirectorstooleniently. Companies ct 2008 act o 71 of 2008 2 companies act, 2008 act no. Kranspoort eienaarskomitee rf npc reg no 200402332308 version 2 aug 16 page 7 of 66. If an offer falls outside this meaning, chapter iv and its onerous provisions. This guide is intended as an easy reference, pocketsized guide for directors, shareholders. The topic is motivated by the recent change in our company law ushered by the new companies act no. 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.

Companies act no 71 of 2008 western cape government. 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. 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. The meaning of offer to the public forms the basis of chapter iv, as it did under the 1973 act. The companies act 61 of 1973 the previous act was repealed on 1 may 2011. Corporate in a calabash introduction running a business in south africa may be done using one of three options.

Relief under section 163 of the companies act 71 of 2008. Companies act 2008 summary of transitional arrangement. Guidelines for corporate law reform may 2004, a policy document developed by. Guidelines for corporate law reform may 2004, a policy document developed by the department of trade and industry the dti.

Companies act, 71 of 2008 series dommisse attorneys inc. Preexisting companies on 1 may 2011 every preexisting company, that was formed in terms of the previous. Companies act no 71 of 2008 by ira epstein fluxmans inc. Accounting records, financial statements, financial reporting. This is a relatively new act, which came into operation on 1 may 2010 and which has replaced the 1973 companies act.

The act replacesd the companies act, 61 of 1973 and came into effect on 1 may. Lets start by looking at the provision of section 45, as to who the section applies to. 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 companies act, 2008 has been updated by the companies regulations, 2011, being notice no. Feb 19, 2019 companies act, 71 of 2008 series part 5. Act requires that companies falling within specific categories. Piercing the veil under section 209 of the companies act 71. Guide to companies act directorno 71 of 2008s guide 20. Amendment of the companies act regulation, 2011 102kb pdf 5 february 2014. The act replacesd the companies act, 61 of 1973 and came into effect on 1 may 2011. A significant change from the previous act of 1973 arises in section 45 relating to financial assistance. Registration number 199701835208 the company this moi was adopted by special resolution passed on18 may 2017, a copy o f which was.

The companies act 71 of 2008 the act was signed into law on 8 april 2011 and its commencement date was 1 may 2011. Section 80 of the companies act, 71 of 2008 the companies. A director or prescribed officer of the company or of a related or interrelated company a related or interrelated company or corporation a member of a related or interrelated corporation a person. 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. The enactment of s724 and s5 of the companies act, no.

The new companies act introduced fundamental changes to. 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. Promote compliance with the bill of rights as provided for in the constitution in the application of company law. Companies act no 71 of 2008 872kb pdf maatskappywet no 71 van 2008 685kb pdf. 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. This information should be considered in conjunction with the act itself. Companies act 71 of 2008 english text signed by the president assented to. The new companies act introduced fundamental changes to south african company law. Operating the business under a close corporation, as long as this close corporation was registered and in operation before 1 may 2010. Guidelines for corporate law reform may 2004, a policy document developed by the department of. 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. Section 45 of the companies act no 71 of 2008 applies to direct or indirect assistance to. Jul 24, 2012 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.

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. The simplicity and flexibility reflected in the act will contribute significantly to promote efficiency and transparency. This paper entitled capital rules in terms of the companies act no. Trevor manuel the then minister of finance raised concern regarding intragroup company loans without. Companies act 71 of 2008 final linkedin slideshare. For guidance, the developers looked to south african company law for the 21st. Amendment of the companies act regulation, 2011 560kb pdf 20 august 20. For guidance, the developers looked to south african company law for the 21st century. Preexisting companies on 1 may 2011 every preexisting company. Henochsberg on the companies act 71 of 2008 request pdf. The minister of trade and industry has, in terms of section 223 and. Operating the business under ones own name as a sole proprietorship.