The purposes of this Act are to—
| (a) |
promote compliance with the Bill of Rights as provided for in the Constitution, in the application of company law; |
| (b) |
promote the development of the South African economy by— |
| (i) |
encouraging entrepreneurship and enterprise efficiency; |
| (ii) |
creating flexibility and simplicity in the formation and maintenance of companies; and |
| (iii) |
encouraging transparency and high standards of corporate governance as appropriate, given the significant role of enterprises within the social and economic life of the nation; |
| (c) |
promote innovation and investment in the South African markets; |
| (d) |
reaffirm the concept of the company as a means of achieving economic and social benefits; |
| (e) |
continue to provide for the creation and use of companies, in a manner that enhances the economic welfare of South Africa as a partner within the global economy; |
| (f) |
promote the development of companies within all sectors of the economy, and encourage active participation in economic organisation, management and productivity; |
| (g) |
create optimum conditions for the aggregation of capital for productive purposes, and for the investment of that capital in enterprises and the spreading of economic risk; |
| (h) |
provide for the formation, operation and accountability of non-profit companies in a manner designed to promote, support and enhance the capacity of such companies to perform their functions; |
| (i) |
balance the rights and obligations of shareholders and directors within companies; |
| (j) |
encourage the efficient and responsible management of companies; |
| (k) |
provide for the efficient rescue and recovery of financially distressed companies, in a manner that balances the rights and interests of all relevant stakeholders; and |
| (l) |
provide a predictable and effective environment for the efficient regulation of companies. |
Protection of Businesses Act, 1978
