Companies Act No 71 of 2008 | Western Cape Government

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Companies Act No 71 of 2008

No. 421 of 2009
Legislated: 9 April 2009
(The Government of South Africa)

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.
The content on this page was last updated on 30 April 2014