S166 Alternative Dispute Resolution

Section 166 – Alternative Dispute Resolution

Sections 166 and 167 of the Companies Act concerning Alternative Dispute Resolutions in companies were amended by the removal of references to the ADR process being submitted to an accredited entity, as defined, or any other person.
As a result, a person who would be entitled to apply for relief or file a complaint in terms of the Companies Act may now refer a matter to the Companies Tribunal only. The Tribunal may issue a certificate of non-resolution if deemed appropriate following mediation, after which the affected person may refer the matter to the Tribunal for arbitration.
A party may object and request that a different member of the Tribunal preside over the arbitration than the one who presided over the mediation.
The Companies Tribunal arbitrator’s award in a matter is considered final and binding on all parties involved.

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.