Companies Act No 71 of 2008

Companies Act No 71 of 2008

The purpose of this Act is 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:
  • encouraging entrepreneurship and enterprise efficiency.
  • creating flexibility and simplicity in the formation and maintenance of companies.
  • 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 organization, 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 shareholders and directors within 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.