The Companies Act 2008, which only became effective in 2011, represented a setback for shareholder rights.

Under the old act the board had powers delegated by the shareholders; the new act transferred the authority to run a company from the shareholders to the board. In an era of increasing shareholder activism the drafters of SA’s 2008 Companies Act decided to push back against the global trend of increasing shareholder power vis-à-vis the board.

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