ATC231122: Report of the Portfolio Committee on Trade, Industry and Competition on the Companies Second Amendment Bill [B26-2023], dated 22 November 2023

Trade, Industry and Competition

Report of the Portfolio Committee on Trade, Industry and Competition on the Companies Second Amendment Bill [B26-2023], dated 22 November 2023

 

The Portfolio Committee on Trade, Industry and Competition, having considered the subject of the Companies Second Amendment Bill [B26-2023] (National Assembly - sec 75 Bill), referred to it and classified by the Joint Tagging Mechanism as a section 75 Bill, reports the bill [B26A-2023], as follows:

 

1. Purpose of the Companies Second Amendment Bill

 

The Bill seeks to amend the Companies Act, 2008 (Act No. 71 of 2008), so as to:

• Amend the time bars, in respect of proceedings to recover any loss, damages or costs for which a person may be held liable in terms of section 77 of the Companies Act;
• the time bar for the bringing of an application to declare a person delinquent or under probation in terms of section 162(2) and (3) of the Companies Act; and
• Provide for matters connected therewith.

 

1. Process followed by the Committee on the Companies Second Amendment Bill

 

1. The Bill was introduced to Parliament by the Minister of Trade, Industry and Competition and referred to the Committee on 28 August 2023.
2. On 29 August 2023, the Committee was briefed by the Department of Trade, Industry and Competition (DTIC) on the Bill.
3. On 1 September 2023, the Committee released a media statement and called for written submissions, with the statement also being placed on all parliamentary social media platforms.
4. On 4 September 2023, the Committee placed adverts in one national, one provincial and nine regional newspapers inviting stakeholders and interested parties to submit written submissions on the Companies Second Amendment Bill [B26-2023], by the closing date for submission, namely 2 October 2023.
5. In terms of the Rules of Parliament, the Committee has the right to approve, reject or amend any legislation before it.
6. On 17, 18 and 20 October 2023, the Committee held public hearings and invited certain stakeholders to provide an oral presentation on their submissions in respect of the Companies Second Amendment Bill.
7. The submissions received from stakeholders on the Bill were not substantive in nature with the majority of the submissions supporting the Bill as it gives effect to the recommendation of the Judicial Commission of Inquiry into Allegations of State Capture (Zondo Commission).
8. However, the Committee received seven substantive submissions on the Bill, namely: (i) the Auditor General of South Africa; (ii) Business Unity South Africa (BUSA); (iii) Corruption Watch; (iv) Law Society of South Africa (LSSA); (v) Webber Wentzel; (vi) Werksman; and (vii) the Western Cape Government. Of these seven, BUSA, Corruption Watch, and LSSA formed part of the public hearings held on 17, 18 and 20 October 2023.
9. The Committee thereafter received briefings from the Parliamentary Legal Services and the DTIC in respect of submissions received before deliberating thereon.
10. The Committee agreed to various amendments as depicted in B26A-2023, which are captured in B26B-2023.

 

1. Recommendation

 

The Portfolio Committee on Trade, Industry and Competition recommends that the House adopts the report and approves the second reading on the Companies Second Amendment Bill [B26A-2023].

 

The Democratic Alliance and the Freedom Front Plus abstained.

 

Report to be considered.