The Department of Trade and Industry has published the Companies Amendment Draft Bill, for public comment.
The Bill seeks to amend the Companies Act, 2008, so as to:
▪ change the definition of securities;
▪ clarify when a Notice of Amendment of a Memorandum of ncorporation takes effect;
▪empower a court to validate the irregular creation, allotment or issue of shares;
▪ clarify how shares which are not fully *aid are to be dealt with; to exempt a company from the requirements applicable to financial assistance between a company and its subsidiaries;
▪ amend the instances where approval of shareholders will be required for any share buybacks by the company;
▪ extend the definition of an employee share scheme to include those where there are purchases of shares of a company;
▪ limit the circumstances under which a private company will be a regulates company;
▪ deal with the composition of the social and ethics committee and its functions; and to ensure differentiation of duties between the chairperson of the Tribunal and the executive director thereof.
Comments can be emailed to Mr Desmond Ramabulana at DRamabulana@thedti.gov.za by no later than Friday, 14 December 2018