What do you need to do to protect your company’s interests in the light of the new Companies Act
- Have an attorney specialising in corporate law review your founding documents and agreements and draft a Memorandum of Incorporation and new shareholders agreement as soon as possible;
- Review your Directors and Officers insurance;
- If you are part of a group of companies, consider whether different companies now fall within the new definition of group for purposes of accounting;
- Obtain training for your directors on risk areas and the new governance rules; and
- Respond proactively to the risk of your key suppliers or clients undergoing business rescue, by inserting a new provision in your supply agreements.
Of course there are further new risk areas and new compliance requirements in the Companies Act which also require your attention. The items listed above will nevertheless be a good start.