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Business Rescue Provisions to be Tweaked

July 23, 2014

Department of Trade and Industry

Amendments to the Companies Act to provide more certainty on its business rescue provisions are on the cards.

The trade and industry minister, Rob Davies, announced this during his budget vote speech in parliament.

According to the minister, the Specialist Committee on Company Law headed by Dr Michael Katz had identified the need for amendments to the act to enhance its efficacy.

Other proposed legislative developments in the current year include:

• Gambling Amendment Bill- address certain gambling activities such as online gambling, curb addiction, eradicate illegal gambling and improve regulatory bodies.
• Copyright Amendment Bill – tighten up law on artists and introduce measures to regulate fair use and fair contract terms.
• Liquor Amendment Bill – review trading hours, age restrictions and locations.
• Business Act Amendment Bill – simplified registration process for businesses in particular small businesses (revised bill to be published).

The minister emphasised that all proposals would be subjected to a regulatory impact assessment to prevent the imposition of barriers to doing business or the raising of business costs.

“This process includes a cost benefit analysis which assists us in choosing the appropriate legislative tools to employ”.

The minister also announced that the regulations to the Lotteries Amendment Act would be published this year.

Affordability assessment regulations for the National Credit Amendment Act will also be introduced.

Regulations for The Intellectual Property Laws Amendment act are also in the pipeline.

A Minerals Beneficiation Action Plan will be developed in 2014 as a component of the Industrial Policy Action Plan to boost the beneficiation of South Africa’s mineral resources.

Legislation governing procurement will be looked at to improve compliance across government and enhance the transversal procurement processes.

As regards the automotive sector, the Automotive Production Development Programme would be reviewed in order to further grow the local car industry.

Meanwhile, in his budget vote speech, the deputy minister, Mzwandile Masina, declared that renewed focus would be place on developing black industrialists in the local economy.

Work will be undertaken together with the Presidential B-BBEE Advisory Council to formulate specific plans to achieve this objective.

“One such action will be the creation of a targeted incentive to support black entrepreneurs entering the industrial sector, including in the film and to focus more on the talent support, which is often ignored”.