S118 Regulated Companies

Section 118 – Regulated Companies

In terms of the amendments, companies that have 10 or more shareholders and whose assets and turnover exceed the (to be) prescribed minimum values would be considered regulated companies indefinitely. Previously, the Companies Act required that any company be considered a regulated company if it transferred more than 10% of its issued shares during the past two years. Part B, Part C, and the Takeover Regulations apply to companies that are considered regulated, in terms of which additional requirements apply when companies enter into share-related transactions (transfers, repurchases, allotments, etc.), schemes of arrangement, and other matters, all of which become reportable to the Takeover Regulations Panel.

The Companies Act Amendments 2024:

Pertinent changes were made to our South Africa Companies Act recently 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 amended provisions are not yet operational and will come into effect after President Cyril Ramaphosa makes proclamation in the Gazette as to the effective date.

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.