The Minister of Trade and Industry, Dr Rob Davies said the implementation of the new Companies Act is progressing and that entrepreneurs and businesses have benefited from it. Davies was speaking at the two-day Company Law Symposium hosted by the Department of Trade and Industry, (the dti) together with the Specialist Committee on Company Law (SCCL) in Kempton Park, today.
The purpose of the symposium, which ends tomorrow, is to discuss and consider important principles arising from the Companies Act, including mergers and acquisitions, fundamental transactions, directors and prescribed officer’s duties and responsibilities.
Davies said the new Companies Act has allowed the Companies and Intellectual Property Commission (CIPC) to improve their online registration processes and made it possible for a number of companies to avoid liquidation since 2011, through the process of Business rescue.
"It should be noted that CIPC systems have improved immensely in the past two years and this is mainly due to the simplification of registration brought about by the Act. The refining of the new information technology and system data has also eradicated threats of company hijacking," said Davies.
He added that the partnership with banks to register businesses has also assisted in reducing some of the load from the commission.
According to Davies the simplification of registration is one of the few benefits of the Companies Act. He said business rescue models that were introduced have allowed for companies to build capacity around the regulation.
"Business rescue models have allowed for many companies with real capacity, capital, and skills to survive and save jobs. Since 2011, 1338 business rescue notices were filed and only 73 resulted in liquidations," said Davies.
He added that these statistics show that there are processes that are still in continuation, and that there are other solutions other than bankruptcy and liquidation.
The symposium is attended by more than three hundred stakeholders comprising of business, law practitioners and government officials.
Enquiries:
Sidwell Medupe
Departmental Spokesperson
Tel: 012 394 1650
Cell: 079 492 1774
E-mail: MSMedupe@thedti.gov.za
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