Two important pieces of legislation-a new companies act and a new consumer protection bill-are now scheduled to come into force on April 1st 2011, after repeated delays, although further extensions are possible given the complexity of drafting the laws and the need to publicise the changes in advance. The new companies act, now almost three years in preparation, will bring a host of changes such as restructuring corporate categories, offering alternatives to liquidation and easing financial reporting rules for small and medium-sized companies. Most enterprises will need to submit a new memorandum of incorporation that will define more clearly the roles and responsibilities of the various players such as directors, officers and shareholders. The general perception within South African business is that the act will have a positive effect by helping to streamline and modernise the regulatory environment. However, there are doubts about whether the authorities have sufficient administrative capacity to deal with the changes, and some aspects of the law remain contentious.

The imposition of much stricter corporate governance rules (informed by the three King codes) and far heavier penalties for violations may please investors and shareholders but could deter individuals from taking positions on company boards (especially as the rules apply to both executive and non-executive directors), leading to a loss of expertise. Some technical disagreements also remain, such as the distinction between technical and commercial insolvency, although these may be ironed out in the final drafting process. Part of the reason for the delay in the companies act was the government's decision to synchronise the implementation of the law with a new consumer protection act-which hands greater power to consumers vis-à-vis sellers-as the two bills cover some of the same territory and are complementary. However, the consumer protection act is proving trickier to draft, because of the difficulty in balancing rights and responsibilities and sealing possible loopholes, which could lead to further delay. The government also aims to run a major publicity campaign before the acts come into force, which means that time is running short.