The Companies and Intellectual Property Commission (CIPC) is concerned that external companies listed in SA but not registered in the country are not subject to certain provisions of the Companies Act.
Under the Companies Act, an external company is a foreign company that is carrying on a business within SA.
A publicly listed foreign company was defined by the Companies Act as an external company and was technically allowed to contract out of certain civil and criminal provisions of the act, including section 214 regarding the duties of directors. This meant that in terms of liability there were no consequences.
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