The South African Companies Act of 2008 brought significant changes to the regulation of external companies, which are foreign companies incorporated outside of South Africa. The 2008 Act aims to strike a balance by reducing the extent of regulation on external companies to promote investment, while also providing a level of protection for employees and third parties dealing with them.
In comparison to the 1973 Act, the 2008 Act introduced more detailed provisions covering areas like financial reporting, disclosure requirements, record-keeping, and governance. Its objectives are to enhance transparency, accountability, and corporate governance for external companies operating in South Africa.
Overall, the 2008 Act modernized the regulatory framework, aligning it with international best practices and offering clearer guidelines for the registration and operation of external companies within South Africa.
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