On 27 December 2024, various sections of the (i) Companies Amendment Act No. 16 of 2024 and the (ii) Companies Second Amendment Act No. 17 of 2024 (“the Amendment Acts”) came into effect by publication in Government Gazette No. 51837. Although there are still a number of further amendments to be declared effective, the sections that were declared effective at the end of last year will have a significant impact on South African Companies and directors.
The amendments which have come into effect are aimed at facilitating and achieving easier means of conducting business whilst increasing corporate transparency and accountability of directors.
These amendments have brought about important changes to, amongst other things –
- the financial assistance and share buy-back provisions;
- the regulation, appointment, composition and procedures relating to Social and Ethics Committees;
- auditor appointments; and
- director’s liability and the delinquency provisions.
We will be publishing a comprehensive article detailing the effects of these amendments soon.