Company Law

• • This is the body of law under which the formation, registration or incorporation, governance, and dissolution of a company is administered and controlled.
    
    The Companies Act 71 of 2008 establishes corporate democracy (one share one vote) as the prevailing regime in South African company law.
    
    Whilst the majority shareholders exercise control over a company and its decisions, the Companies Act grants the minority
    shareholders protection in the form of derivative action. This serves as a mechanism to ensure that boards account for their decisions.
    
    South Africa’s courts play an important role in safeguarding the minority’s interests as they act as gatekeepers, determining the
    circumstances in which a minority shareholder can institute derivative litigation on behalf of the company.
    
    The Companies Act codifies many of the common law duties of directors of companies and provides that a director must act in
    good faith, for a proper purpose, in the best interests of the company, and with the degree of care, skill and diligence that may reasonably be expected.
    
    The Companies Act also makes specific provision for the holding of meetings by electronic communication and for shareholders to
    pass round robin resolutions without having to call a meeting. Similar provisions are made in respect of directors’ meetings and resolutions.
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    Hi, I’m Kailash Pillay, an attorney from the city of Johannesburg. My passion for the law
    stems from a desire to improve upon the lives of the vulnerable who fall prey to a
    corrupt system.
    I studied at the University of Johannesburg where I obtained my Bachelor of Laws
    degree, the starting point to the long journey of becoming a legal practitioner.
    This profession has taught me to persevere through the complexities of the law and to
    continually develop my skills as a legal professional.