New Companies Act signed
14 April 2009

The new Companies Act was signed by the president on April 8 2009 and gazetted Thursday, April 9 2009, in Gazette No. 32121 (Notice No. 421). This Act is called the Companies Act 2008 and comes into operation on a date fixed by the president by proclamation in the Gazette, which may not be earlier than one year following the date on which the president assented to this Act.

The new Act could not have come into existence at a more opportune time, the Department of Trade and Industry said in a statement.

"While government has implemented various strategies to deal with the challenges of the global economic downturn, the effects of this crisis are likely to persist for more years to come.

"The new [Companies] Act brings about a lasting mechanism to facilitate the rescuing of businesses that are in financial distress. It is aimed at ensuring that companies are saved before they reach a stage of insolvency and ultimate liquidation."

It would also bring South Africa in line with international best practice, the Department of Trade and Industry said.