Chairperson, colleagues, comrades, ladies and gentlemen, economic transformation, as espoused by the ANC and captured at its 52nd conference in Polokwane and to be implemented by our government, implies changes that will not emerge spontaneously from the invisible hand of the market. People acting collectively in the spirit of human solidarity must shift the patterns of economic development in this country.
The Bill before us here today is one attempt in the direction of economic development involving the people. It seeks to reform and overhaul the rationale behind the Companies Act, Act 61 of 1973. The overhauling and reforming referred to above became inevitable, so as to replace the 1973 Act, which is outdated, formalistic, creditor-oriented and overtly criminal, to respond effectively to globalisation and the advent of our democracy; to circumvent corporate failures and scandals resulting from weaknesses in corporate governance; to increase market transparency; and to simplify company registration and maintenance.
In order to strengthen corporate governance and transparency, the Bill obliges all types of companies to prepare annual financial statements. The statements are seen as part of modernising and encouraging sound management and promoting sustainability. As our Constitution, in its Bill of Rights section demands that the South African citizenry have access to information, the Bill grants the public access to any company records such as lists of directors and shareholders of companies.
In conclusion, Chairperson, this Bill comes at an opportune time where the trend internationally is towards simplification of the law, creating a culture of corporate governance, reducing the regulatory burden, providing legal backing for financial reporting standards and increasing market transparency. What is left for us is to put in place systems for the successful implementation of the law. The Select Committee on Economic and Foreign Affairs supports the Bill and invites this august House to do the same. Thank you.
Debate concluded.