Business Unity South Africa (BUSA) Statement on the Draft Companies Amendment, 2023
24 October 2023
BUSA expresses a significant concern regarding the potential ramifications of the draft Companies Amendment Bill on the business community should it be enacted in its current iteration. While the Bill aspires to bring about constructive reforms, it has also given rise to several legitimate concerns and alarms that require thorough and deliberate consideration as outlined below:
Impact on Small Businesses: Small and medium-sized enterprises (SMEs) are vital contributors to our economy. We are concerned that certain provisions in the Bill might inadvertently place additional compliance requirements and costs on SMEs, potentially impeding their competitiveness and growth.
Complexity and Ambiguity: Some sections of the Bill have been deemed complex and ambiguous, making it challenging for companies to interpret and comply with the new regulations. This ambiguity may result in increased legal disputes and compliance difficulties.
Increased Regulatory Oversight: While enhanced regulatory oversight is intended to improve corporate governance and transparency, business is apprehensive about excessive government interference and bureaucracy.