S1 Definitions - Statucor

COMPANIES ACT AMENDMENTS NO. 16 OF 2024

Companies Act Definition Changes to Securities and Shares
Amendments to Section 1 of the Companies Act

Shares are included in the definition of “Securities” in the Companies Act. The definition of “Securities” was amended, and the terms “B-BBEE Act” and “B-BBEE Commission” were also defined in the Companies Act. The amendment was necessitated because the previous definition of “Securities” was ambiguous, as it referred to “other instruments” in addition to shares, debentures, or similar instruments. Additional functions were assigned to the Companies Tribunal in relation to the B-BBEE definitions.

The definition of “Securities” was amended to clarify that it only applies in relation to the Companies Act, and the ambiguity surrounding securities, including “other instruments,” was removed.
The definition of “Securities” now includes “for the purposes of this Act, shares or debentures, irrespective of their form or title, issued or authorized to be issued by a profit company.”
“B-BBEE Act” and “B-BBEE Commission” were defined to accommodate amendments related to the Companies Tribunal’s functions. These two additions however will only come into effect later once proclaimed in the Government Gazette.”

The Companies Act Amendments 2024:

Pertinent changes were made to our South Africa Companies Act after the Companies Amendment Act 2024, No. 16 and the Companies Act Second Amendment, 2024 No. 17 were ascended into law on 25 July 2024.

The above amendments came into effect after proclamation was made in the Gazette during December 2024.

Statucor continues to unpack the amendments and the effect that they may have on our valued clients, and we look forward to publishing further communications on our observations in future. Click here for a full summary of all changes made to the Companies Act through the 2024 Amendments or view our News page for our latest articles on the Companies Act, Governance and Compliance matters that may be pertinent to you.