Policy on Corporate Law Reform

In July 2004 the Department of Trade & Industry (dti) distributed a document on guidelines for the proposed Corporate Law Reform (published in the Government Gazette dated 23 June 2004, Notice 1183) for public comment.

Public consultations were held in respect of the document and the deadline for submissions was 15 September 2004. 

A number of these consultations were attended by representatives from both ICSA and the CSIG.  The content of the document was also discussed in some detail at the ICSA/CSIG breakfast held at the Johannesburg Country Club on the 14th of August 2004. As a result of these discussions it was agreed that ICSA would arrange a session at which the content of the document could be further discussed. 

A session took place on the 1st of September 2004 at ICSA's offices and was attended by myself, representing the CSIG and representatives from ICSA and SAICA.  The meeting was also attended by Mr John Ainsworth, chief executive officer of the international ICSA.  The meeting agreed that there were a number of issues addressed in the guideline document that were of huge importance to members of ICSA and CSIG.  It was also agreed that this opportunity should be used to address issues that were not raised in the dti document, such as the need for larger private companies to also have company secretaries.  As a result, ICSA and the CSIG have no option but to be seen to proactively and constructively participate in the process and to ensure that our "voice is heard" in the preparation of the draft bill.  Mr Ainsworth also offered the assistance of the ICSA (UK) resources and documents as a similar process is currently being undertaken in the United Kingdom.  He was of the opinion that most of the documents prepared by ICSA in the UK would be applicable, to some extent, in light of the close alignment between the corporate laws of South Africa and the United Kingdom. 

Clive Kneale, together with Jean Caddy, was requested to prepare a joint submission on behalf of ICSA and the CSIG with the inclusion of the ICSA (UK) documents, where appropriate.  Although this is only the start of the process that should eventually lead to new legislation in the corporate arena, you are more than welcome to address any comments you may have and wish to be considered to Clive Kneale at cdkneale@mweb.co.za.

We will keep you informed of progress in this respect.

Annamarie van der Merwe
CHAIRMAN