The objective of this study is to do critical analysis if the new Companies Act, with specific reference capital maintenance rules. Furthermore, this study will compare the current Companies Act with the new Companies Act, with a specific focus on sections 44, 45 and 48 of the new Companies Act and their comparison to sections 38, 85 and 226 of the current Companies Act. The next objective is to establish what impact the new piece of legislation will have on South African companies and whether the deficiencies in the current Companies Act have been addressed by the new Companies Act. The final objective is to establish whether this new piece of legislation gives adequate protection for the shareholders of a company. This study will focus on certain aspects of capital maintenance and excludes a comprehensive study of the capital maintenance rules, as the focus will be on certain sections in the current Companies Act and also the new Companies Act. This study will focus on the comparison between the new and current Companies Act. Furthermore, the focus will also be on the protection of the creditors of a company when analysing the different sections of the current companies act and the new companies act. / Dissertation (LLM)--University of Pretoria, 2011. / Mercantile Law / unrestricted

No abstract available. Copyright / Dissertation (LLM)--University of Pretoria, 2010. / Mercantile Law / unrestricted

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 / Dissertation (LLM)--University of Pretoria, 2010. / Mercantile Law / unrestricted

The Companies Act 71 of 2008 (“2008 Companies Act”) will have far reaching effects on the manner in which a company is formed and operated under South African company law and in particular entrenches the procedure that must be followed by a company when acquiring its own shares. The radical amendment of the capital maintenance rules by the introduction of the solvency and liquidity tests to the Companies Act 61 of 1973 has been carried forward under the 2008 Companies Act. These tests impose an obligation on a company to ensure that the company is both solvent and liquid at the time of the acquisition of its own shares and for a stated period thereafter. The 2008 Companies Act further brings the duties and liabilities of the directors in line with their current fiduciary duties in terms of common law. / Mercantile Law / LLM

The Companies Act 71 of 2008 (“2008 Companies Act”) will have far reaching effects on the manner in which a company is formed and operated under South African company law and in particular entrenches the procedure that must be followed by a company when acquiring its own shares. The radical amendment of the capital maintenance rules by the introduction of the solvency and liquidity tests to the Companies Act 61 of 1973 has been carried forward under the 2008 Companies Act. These tests impose an obligation on a company to ensure that the company is both solvent and liquid at the time of the acquisition of its own shares and for a stated period thereafter. The 2008 Companies Act further brings the duties and liabilities of the directors in line with their current fiduciary duties in terms of common law. / Mercantile Law / LLM