Swaziland enacts a new Companies Act

The Prime Minister recently announced during a press conference in October 2009 that the Companies Act of 2009 has been accented by His Majesty King Mswati III.

According to the Minister for Commerce Industry and Trade, Jabulile Mashwama, this means that the country’s corporate law has been transformed and the old Companies Act No.7 of 1912 has been overhauled. The ministry carried out extensive consultations with stakeholders who included the business community, workers, professional users such as members of the academic institutions, professional legal and accounting bodies, as well as the general public. The draft Companies Bill with a summary thereof was distributed to stakeholders and the general public for comment leading to the finalisation.

The new Act aligns itself with the principles of good governance because there is a provision that will regulate matters that require statutory regulation, such as directors’ interests in contract with the company, directors’ interests in the company securities and loans by the company to directors or people connected with them among many others.

The repealed Companies Act of 1912 could not adequately control who could be appointed as an auditor or perform audits on a Swazi registered company and this was a major weakness in the Swaziland legislation. However, one of the reforms in the new Act includes that of auditors, which contains a comprehensive provision on appointment, removal, rights, duties and remuneration of auditors