A critical analysis of the New Capital Maintenance rules in terms of the Companies Act 71 of 2008

Abstract

In conducting this study I want to give more clarity about the New Companies Act and how it compares to the Current Companies Act. According to the study and the results, the New Companies Act gives more protection to, specifically the shareholders and the creditors. The New Companies Act is much wider in some instances and gives more clarity. On the other hand the are still a lot of aspects that needs to be addressed. In this study I took a look at Sections 38, 226 and 85 of the Current Companies Act and then I compared it to Sections 44, 45, and 48 of the New Companies Act. With all the changes that have been brought to the New Companies Act it now, puts South African Law in line with the International standards of Company Law. Copyright