Hon Chairperson, hon members, officials from the department, it is an honour that one is humbled by to present this important and progressive Bill on this very important day.
The Companies Act, Act 71 of 2008, was assented to by the President on April 2010 and overhauls the current Companies Act of 1973. Let me be upfront and say that, as a committee, we had enough time for engagement with the department.
It is clear that the Bill has important features that place South Africa among the leaders of the world in terms of company legislation. These features include flexibility, through the introduction of alterable and unalterable provisions, to effectively regulate companies of all sizes; the simplification of the registration process to cut down on red tape; the clarification of directors' duties without replacing the common-law principle; enhanced protection for minority shareholders to increase shareholders' activism and to minimise the scourge of company scandals; recognition of employees' rights to participate in company governance; and the business rescue provision for early detection and turnaround of companies in financial distress, which will go a long way towards saving jobs. You are all aware that this year has been declared the year of creating jobs.
The clarification given by the department to the committee regarding the extension of the implementation date was that a request from business was accepted. It took almost two years before it could be finalised.
Our engagement with the department made us realise that when a person has been convicted of fraud or dishonest conduct, such as person should be disqualified for a limited period which may be extended by a court with jurisdiction. The constitutional rights of such a person should not be impacted upon indefinitely.
It became clear from our engagement with the department that this piece of legislation would go a long way in transforming the way in which business is done in our country. On behalf of the committee, we would like to thank the department for their detailed engagement with the committee. As a result, and on behalf of the committee, we move that the House pass the Bill. I thank you.
Debate concluded.