With the publication of the proposed changes to the Companies Bill (expected to take effect in 2010), there has been uncertainty about the future of close corporations. The New Companies Bill provides for the co-existence of the new Companies Act and the Close Corporations Act.
The Department of Trade and Industry has, throughout the corporate law reform process, emphasised the need for simplification, flexibility, corporate efficiency, transparency and predictable regulation. In addition, a need for legislation to be appropriate to the legal, economic and social context of South Africa, was identified. The new Companies Bill proposed is expected to take effect in 2010. In the interim, the Companies Act, 1973, as amended by the Corporate Laws Amendment Act, which took effect on 14 December 2007, prevails.
