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Reforms to the Companies Act will increase Accountability and Transparency

J Fubbs

The ANC welcomes the decision of the Department of Trade and Industry (DTI) to amend the Companies Act of 2008 to increase corporate accountability and transparency. The reforms around company law will also reduce the regulatory burden and enhance an improvement interpretation of the provisions of the Act. Through working closely with stakeholders and practitioners the DTI has learnt at first-hand about the difficulties in the implementation of certain sections of the Act when trying to achieve policy objectives.

These objectives include encouraging economic stability through good governance which will enhance investor confidence and international and domestic competitiveness in the South African economy. The acting Deputy Director General for Consumer and Corporate Regulations at the DTI, Mr MacDonald Netshitentzhe said that the DTI intended to consult more broadly and he called on stakeholders and role players to be prepared to engage with the department so that it could be "ensured that policy objectives became a success".

The establishment of social and ethics committees in companies was important not only to protect communities, but the broader environment in which the companies worked in plus it would protect shareholder interests. The amendments will also facilitate more effective legislative oversight of companies, as the Companies Intellectual Commission is one of the critical cogs in maintaining an upward trend in our inclusive developmental economy.

I thank you

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