South Africa’s new Companies Act aims to provide some recourse for companies in distress, reduce the cost of doing business in the country, promote corporate governance and transparency and empower shareholders. According to the Department of Trade and Industry (DTI), the new Act – recently signed into law by President Kgalema Motlanthe – could not have come at a more opportune time given the current global economic situation. “The new Act brings about a lasting mechanism to facilitate the rescuing of businesses that are in financial distress,” the DTI’s Zodwa Ntuli said in a statement this week. “It is aimed at ensuring that companies are saved before they reach a stage of insolvency and ultimate liquidation.” The new law will empower both companies and workers to initiate business rescue plans, where there are apparent signs of distress. “This will ensure the efficient running of companies, while strengthening means of sustaining jobs in the economy. We want to promote efficiency and economic growth, retain efficient resources and save jobs,” Ntuli said.