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Eastern Cape
New Companies ACT & How Section 21 Co. are affected
1 May 2011 was D-DAY for the implementation of the Companies Act, 71 of 2008 (“New Act”). Companies are compelled to replace their Memorandum and Articles of Association with a Memorandum of Incorporation (MOI) and amend their Shareholders’ Agreements within a period of two years.
HOWEVER
The New Act could lead to conflicts between your current Memorandum and Articles of Association and Shareholders Agreements with respect to:
· Liability, duties and conduct of Directors
· Shareholders rights to notices and access to information
· Meetings and resolutions of directors and Shareholders
· Fundamental transactions
ACT NOW:
DO NOT GET CAUGHT IN CONFLICT AND REPLACE YOUR MEMORANDUM AND ARTICLES OF ASSOCIATION AND AMEND YOUR SHAREHOLDERS’ AGREEMENT NOW.
To ensure registration of your Memorandum of Incorporation as soon as possible and for more information please visit the Department of Trade and Industry website www.thedti.gov.za/
New Companies ACT & How Section 21 Co. are affected
