What are the purposes of companies act 71 of 2008?
Written by Dr. Adv. Leigh Hefer & Jayne Hunter-Rhys. COMPANY SECRETARY’S HANDBOOK (2021). Published by Genesis Corporate Services.
The purposes of Companies Act, Act 71 of 2008 are to:
Promote compliance with the Bill of Rights as provided for in the Constitution, in the application of company law;
Promote the development of the South African economy by:
2.1 Encouraging entrepreneurship and enterprise efficiency;
2.2 Creating flexibility and simplicity in the formation and maintenance of companies;
2.3 Encouraging transparency and high standards of corporate governance as appropriate, given the significant role of enterprises within the social and economic life of the nation;
Promote innovation and investment in the South African markets;
Reaffirm the concept of the company as a means of achieving economic and social benefits;
Continue to provide for the creation and use of companies, in a manner that enhances the economic welfare of South Africa as a partner within the global economy;
Promote the development of companies within all sectors of the economy, and encourage active participation in economic organisation, management and productivity;
Create optimum conditions for the aggregation of capital for productive purposes, and for the investment of that capital in enterprises and the spreading of economic risk;
Provide for the formation, operation and accountability of non-profit companies in a manner designed to promote, support and enhance the capacity of such companies to perform their functions;
Balance the rights and obligations of directors and shareholders within the companies;
Encourage the efficient and responsible management of companies;
Provide for the efficient rescue and recovery of financially distressed companies in a manner that balances the rights and interests of all relevant stakeholders;
Provide a predictable and effective environment for the efficient regulation of companies.
Source: Section 7 of Companies Act 71 of 2008
Hard copy and E-Book Publications for the Professionals, Company Secretaries, Company Directors and Prescribed Officers, Members of CCs, Business Owners, Lecturers and Students on various business, compliance and legislative topics.
The purposes of Companies Act, Act 71 of 2008 are to:
Promote compliance with the Bill of Rights as provided for in the Constitution, in the application of company law;
Promote the development of the South African economy by:
2.1 Encouraging entrepreneurship and enterprise efficiency;
2.2 Creating flexibility and simplicity in the formation and maintenance of companies;
2.3 Encouraging transparency and high standards of corporate governance as appropriate, given the significant role of enterprises within the social and economic life of the nation;
Promote innovation and investment in the South African markets;
Reaffirm the concept of the company as a means of achieving economic and social benefits;
Continue to provide for the creation and use of companies, in a manner that enhances the economic welfare of South Africa as a partner within the global economy;
Promote the development of companies within all sectors of the economy, and encourage active participation in economic organisation, management and productivity;
Create optimum conditions for the aggregation of capital for productive purposes, and for the investment of that capital in enterprises and the spreading of economic risk;
Provide for the formation, operation and accountability of non-profit companies in a manner designed to promote, support and enhance the capacity of such companies to perform their functions;
Balance the rights and obligations of directors and shareholders within the companies;
Encourage the efficient and responsible management of companies;
Provide for the efficient rescue and recovery of financially distressed companies in a manner that balances the rights and interests of all relevant stakeholders;
Provide a predictable and effective environment for the efficient regulation of companies.
Source: Section 7 of Companies Act 71 of 2008
Hard copy and E-Book Publications for the Professionals, Company Secretaries, Company Directors and Prescribed Officers, Members of CCs, Business Owners, Lecturers and Students on various business, compliance and legislative topics.
Updated on: 23/05/2023
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