ATC240319: Report of the Select Committee on Trade and Industry, Economic Development, Small Business Development, Tourism, Employment and Labour on the Companies Second Amendment Bill [B26B-2023] dated 19 March 2024
NCOP Trade & Industry, Economic Development, Small Business, Tourism, Employment & Labour
Report of the Select Committee on Trade and Industry, Economic Development, Small Business Development, Tourism, Employment and Labour on the Companies Second Amendment Bill [B26B-2023] dated 19 March 2024.
The Select Committee on Trade and Industry, Economic Development, Small Business Development, Tourism, Employment and Labour, having considered the subject of the Companies Second Amendment Bill [B26B-2023] reports on the Bill as follows:
1. Introduction
The Companies Second Amendment Bill was passed by the National Assembly and referred to the National Council of Provinces for concurrence on the 30 November 2023. The Committee received a briefing on the Bill from the Department of Trade, Industry and Competition on the 5 December 2023.
2. Purpose of the Bill
The purpose of the Companies Second Amendment Bill is to amend the Companies Act, 2008, so as to amend the time bars; in respect of proceedings to recover any loss; and damages or costs for which a person may be held liable in terms of Section 77 of the Companies Act. Further, the Bill aims to amend the time bar for the bringing of an application to declare a person delinquent in terms of Section 162(2) and (3) of the Companies Act; and to provide for matters connected therewith.
3. Process followed
The Committee invited public comment through advertisements in newspapers, social media and on te websites of Parliament and government. The closing date for written submissions was 29 January 2024. The advertisement was published in all 11 official languages.
The Committee received submissions on the Bill from the following stakeholders:
- IoDSA and King Committee
- Law Society of South Africa (LSSA)
- Western Cape Government (WCG)
The Committee held public hearings on 21 February 2024, and received responses from the Minister of Trade, Industry and Competition on the 27 February 2024. This was followed by responses by the Department of Trade, Industry and Competition on the 5 and 12 March 2024 on the submissions received. On 12 March 2024, the Committee deliberated on the Bill.
4. Outcome of Committee’s consideration of the Bill
Five members of the African National Congress voted in support of the Bill. Two members of the Democratic Alliance voted against the Bill.
5. Conclusion
The Committee agreed to the Bill without amendments.
Report to be considered.