Abstract
Abstract : The impact of the Constitution on company law is evident from section 7 of the 2008 Companies Act, which states that the purpose of applying company law is to promote compliance with the Bill of Rights. Consistent with the democratic values and human rights as set out in the Constitution and the Bill of Rights, the 2008 Companies Act introduced the establishment of social and ethics committees as a mandatory requirement for specific companies. The heartbreaking events that occurred at Marikana in 2012 are discussed in order to support the argument that a social and ethics committee has an important role to oversee company activities. This also supports the board of directors so that compliance with the Bill of Rights is promoted. An analysis of sections 72(4) to (10) and regulation 43 of the 2008 Companies Act, illustrates that the Act has not provided sufficient guidance for the effective functioning of social and ethics committees. Various amendments to the 2008 Companies Act are recommended, in order for these committees to effectively support boards of directors. These recommendations, if implemented, will ensure that a social and ethics committee fulfils the fundamental role of supporting boards of directors in the oversight of stakeholder relationships and company activities and will ensure that the company carries on business in a responsible manner in order to promote compliance with the Bill of Rights. This dissertation highlights the shortfalls of the 2008 Act and makes recommendations that may provide a more balanced and equitable platform that will ensure that all company stakeholders are protected by the company.
LL.M. (Commercial Law)