Companies Second Amendment Act

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Jurisdiction: South Africa
Instrument: Act or statute
Citation: Act 17 of 2024
Version: Undated source snapshot
Language: en
Updated: 25 Jul 2024
Official source: View official record ↗

application requirements application timing claims recovery company law corporate law court extension court time periods director applications director eligibility director qualification liability liability claims litigation prescription

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For claims to recover loss, damages, or costs under this section, the Prescription Act does not apply and proceedings must be brought within three years of the act or omission, unless the court extends the period for good cause. This section amends section 162 so the director lookback period changes to 60 months before the application, subject to subsection (2A). Claims to recover loss, damage, or costs under section 77 must generally be started within three years of the act or omission, unless the court extends time for good cause. Article 162 is amended so that paragraph (a) now requires the person to be a director of the company, or to have been a director within the previous 60 months, subject to subsection (2A). The court may extend certain periods on good cause shown, even if the period has already expired or the relevant circumstances happened before the amendment was promulgated.

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Provisions of Companies Second Amendment Act

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1
Section 77 of the Companies Act, 2008 (Act No. 71 of 2008), (hereinafter referred
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AI-assisted research summary: For claims to recover loss, damages, or costs under this section, the Prescription Act does not apply and proceedings must be brought within three years of the act or omission, unless the court extends the period for good cause.

1. Section 77 of the Companies Act, 2008 (Act No. 71 of 2008), (hereinafter referred to as the ‘‘principal Act’’), is hereby amended by the substitution for subsection (7) of the following subsection: ‘‘(7) In relation to the proceedings to recover any loss, damages or (c) costs for which a person is or may be held liable in terms of this section— (a) the Prescription Act, 1969 (Act No. 68 of 1969) does not apply; subject to paragraph (c), such proceedings may not be commenced more than (b) three years after the act or omission that gave rise to that liability; and the court may, on good cause shown, extend the period referred to in paragraph (b) regardless of whether— such period has expired or not; or (i) the act or omission that resulted in the loss, damages or costs (ii) contemplated in this section, occurred prior to the promulgation of the Companies Second Amendment Act, 2024 (Act No. 17 of 2024).’’. 5 10 15 Amendment of section 162 of Act 71 of 2008, as amended by section 101 of Act 3 of 2011 20
2
Section 162 of the principal Act is hereby amended—
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AI-assisted research summary: This section amends section 162 so the director lookback period changes to 60 months before the application, subject to subsection (2A).

2. Section 162 of the principal Act is hereby amended— (a) by the substitution in subsection (2) for paragraph (a) of the following paragraph: ‘‘(a) the person is a director of that company or, subject to subsection (2A), within the [24] 60 months immediately preceding the application, was a director of that company; and’’; 25 This gazette is also available free online at www.gpwonline.co.za STAATSKOERANT, 30 JuliE 2024 Tweede Maatskappywysigingswet, 2024 ALGEMENE VERDUIDELIKENDE NOTA: 3 No. 50992 3 No. 17 van 2024 [ ] Woorde in vetdruk tussen vierkantige hakies dui skrappings uit bestaande verordenings aan. Woorde met ’n volstreep daaronder dui invoegings in bestaande verordenings aan. (Engelse teks deur die President geteken) (Goedgekeur op 25 July 2024) WET Tot wysiging van die Maatskappywet, 2008, ten einde die tydsbeperkings te wysig ten opsigte van verrigtinge om enige verlies, skade of koste te verhaal waarvoor ’n persoon ingevolge artikel 77 van die Maatskappywet aanspreeklik gehou kan word; om die tydsbeperking vir die bring van ’n aansoek om ’n persoon ingevolge artikel 162(2) en (3) van die Maatskappywet as misdadiger of op proef te verklaar, te wysig; en om voorsiening te maak vir aangeleenthede wat daarmee in verband staan. DAAR WORD BEPAAL deur die Parlement van die Republiek van Suid-Afrika, soos volg:— Wysiging van artikel 77 van Wet 71 van 2008, soos gewysig deur artikel 49 van Wet 3 van 2011
1
Artikel 77 van die Maatskappywet, 2008, (Wet No. 71 van 2008) (hierna die
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AI-assisted research summary: Claims to recover loss, damage, or costs under section 77 must generally be started within three years of the act or omission, unless the court extends time for good cause.

1. Artikel 77 van die Maatskappywet, 2008, (Wet No. 71 van 2008) (hierna die ‘‘Hoofwet’’ genoem), word hierby gewysig deur subartikel (7) deur die volgende subartikel te vervang: ‘‘(7) Met betrekking tot die verrigtinge om enige verlies, skade of koste te verhaal waarvoor ’n persoon ingevolge hierdie artikel aanspreeklik gehou word of kan word— (a) (b) behoudens paragraaf (c), mag sodanige verrigtinge nie meer as drie jaar na die handeling of versuim wat tot daardie aanspreeklikheid aanleiding gegee het, begin word nie; en is die Verjaringswet, 1969 (Wet No. 68 van 1969), nie van toepassing nie; 5 10 (c) kan die hof, by die aanvoer van goeie gronde, die tydperk bedoel in paragraaf 15 (b) verleng, ongeag— (i) hetsy sodanige tydperk verstryk het al dan nie; of (ii) hetsy die handeling of versuim wat die verlies, skade of koste beoog in hierdie artikel, tot gevolg gehad het, voorgekom het voor die uitvaar- diging van die Tweede Maatskappywysigingswet, 2024 (Wet No. 17 van 2024).’’. Wysiging van artikel 162 van Wet 71 van 2008, soos gewysig deur artikel 101 van Wet 3 van 2011
2
Artikel 162 van die Hoofwet word hierby gewysig—
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AI-assisted research summary: Article 162 is amended so that paragraph (a) now requires the person to be a director of the company, or to have been a director within the previous 60 months, subject to subsection (2A).

2. Artikel 162 van die Hoofwet word hierby gewysig— (a) deur in subartikel (2) paragraaf (a) deur die volgende paragraaf te vervang: ‘‘(a) die persoon ’n direkteur van daardie maatskappy is of, behoudens subartikel (2A), binne die [24] 60 maande wat die aansoek voorafgegaan het, ’n direkteur van daardie maatskappy was; en’’; 20 25 This gazette is also available free online at www.gpwonline.co.za
4
No. 50992
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AI-assisted research summary: The court may extend certain periods on good cause shown, even if the period has already expired or the relevant circumstances happened before the amendment was promulgated.

4 No. 50992 GOVERNMENT GAZETTE, 30 July 2024 Act No. 17 of 2024 Companies Second Amendment, Act 2024 4 (b) by the insertion after subsection (2) of the following subsection: ‘‘(2A)(a) The court may, on good cause shown, extend the period contemplated in subsection (2)(a) in respect of any of the circumstances contemplated in subsection (2)(b) regardless of whether— (i) (ii) such period has expired or not; or the circumstances occurred prior to the promulgation of the Companies Second Amendment Act, 2024 (Act No. 17 of 2024).’’. (c) by the substitution in subsection (3) for paragraph (a) of the following paragraph: ‘‘(a) the person is a director of a company or, subject to subsection (3A), within the [24] 60 months immediately preceding the application, was a director of a company; and’’; and (d) by the insertion after subsection (3) of the following subsection: ‘‘(3A)(a) The court may, on good cause shown, extend the period contemplated in subsection (3)(a) in respect of any of the circumstances contemplated in subsection (3)(b) regardless of whether— (i) (ii) such period has expired or not; or the circumstances occurred prior to the promulgation of the Companies Second Amendment Act, 2024 (Act No. 17 of 2024).’’. Short title and commencement
3
This Act is called the Companies Second Amendment Act, 2024, and comes into
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AI-assisted research summary: This section gives the Act its short title and says it starts on a date fixed by the President in the Gazette.

3. This Act is called the Companies Second Amendment Act, 2024, and comes into operation on a date to be ﬁxed by the President by proclamation in the Gazette. 5 10 15 20 This gazette is also available free online at www.gpwonline.co.za Tweede Maatskappywysigingswet, 2024 5 STAATSKOERANT, 30 JuliE 2024 No. 50992 5 No. 17 van 2024 (b) deur die volgende subartikel na subartikel (2) in te voeg: ‘‘(2A)(a) Die hof kan, by die aanvoer van goeie gronde, die tydperk beoog in subartikel (2)(a) verleng ten opsigte van enige van die omstandighede in subartikel (2)(b) beoog, ongeag— (i) hetsy die tydperk verstryk het al dan nie; of (ii) hetsy die omstandighede voorgekom het voor die uitvaardiging van die Tweede Maatskappywysigingswet, 2024 (Wet No. 17 van 2024).’’; (c) deur in subartikel (3) paragraaf (a) deur die volgende paragraaf te vervang: ‘‘(a) die persoon ’n direkteur van ’n maatskappy is of, behoudens subartikel (3A), binne die [24] 60 maande wat die aansoek voorafgegaan het, ’n direkteur van ’n maatskappy was; en’’; en (d) deur die volgende subartikel na subartikel (3) in te voeg: ‘‘(3A)(a) Die hof kan, by die aanvoer van goeie gronde, die tydperk beoog in subartikel (3)(a) verleng ten opsigte van enige van die omstandighede in subartikel (3)(b) beoog, ongeag— (i) hetsy die tydperk verstryk het al dan nie; of (ii) hetsy die omstandighede voorgekom het voor die uitvaardiging van die Tweede Maatskappywysigingswet, 2024 (Wet No. 17 van 2024).’’. 5 10 15 20 Kort titel en inwerkingtreding
3
Hierdie Wet heet die Tweede Maatskappywysigingswet, 2024, en tree in werking
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AI-assisted research summary: This section says the Act is called the Tweede Maatskappywysigingswet, 2024, and it starts on a date fixed by the President by proclamation in the Gazette.

3. Hierdie Wet heet die Tweede Maatskappywysigingswet, 2024, en tree in werking op ’n datum deur die President by proklamasie in die Staatskoerant vasgestel. This gazette is also available free online at www.gpwonline.co.za
6
No. 50992
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AI-assisted research summary: This text is gazette header and publication information, not a substantive legal rule.

6 No. 50992 GOVERNMENT GAZETTE, 30 July 2024 This gazette is also available free online at www.gpwonline.co.za STAATSKOERANT 30 JULIE 2024 No. 50992 7 This gazette is also available free online at www.gpwonline.co.za 8 No. 50992 GOVERNMENT GAZETTE, 30 July 2024 This gazette is also available free online at www.gpwonline.co.zaPrinted by and obtainable from the Government Printer, Bosman Street, Private Bag X85, Pretoria, 0001Contact Centre Tel: 012-748 6200. eMail: info.egazette@gpw.gov.zaPublications: Tel: (012) 748 6053, 748 6061, 748 6065

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Companies Second Amendment Act

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