How government really sees the important new Companies Act

BusinessLive (I’m sure they’re not alone this morning) has a story about the non-implementation of the new Companies Act on the scheduled 1 April 2011 date.

Some key snippets:

Manoko said that, while the new Companies Act was meant to be implemented tomorrow (Friday, April 1), he was “uncertain when it will go through”, based on processes still underway.

However, he urged all stakeholders to be ready for implementation “at whatever time or date”.

Exactly the point really – being read “at whatever time or date” is bad for business, bad for our economy and therefore, bad for employment.

The newspaper added that Minister of Trade and Industry Rob Davies was travelling outside the country and had not yet signed the regulations that accompanied the new act.

“And it appears that President Jacob Zuma’s office has not yet received all of the relevant documents that have to be signed by him before the new act becomes effective.”

But several days ago we were told that it would be effective 1 April 2011 when very, very clearly it was not going to be.  Being late is one thing – it happens. But not communicating clearly to stakeholders is not only bad manners, it incurs a cost to the country.

However, Manoko told BusinessLIVE he anticipated that the regulations would be published today.

The sad thing is that many people will be holding their breath. This is important and the governments lack of appreciation for the impact this has on business climate is telling.

Our government frets about a New Growth Path and complicated methods of increasing employment. I have two simpler ones:

  1. Stop kidding yourselves that our education system is working.
  2. Start doing the basics right, even if they aren’t as sexy as all the fancy Plans and Gears and Paths.



Published by David Kirk

The opinions expressed on this site are those of the author and other commenters and are not necessarily those of his employer or any other organisation. David Kirk runs Milliman’s actuarial consulting practice in Africa. He is an actuary and is the creator of New Business Margin on Revenue. He specialises in risk and capital management, regulatory change and insurance strategy . He also has extensive experience in embedded value reporting, insurance-related IFRS and share option valuation.

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