Optimising closely held entities to enhance commercial participation and development: the Southern African experience in comparative perspective

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Date
2003
Authors
Henning, J. J.
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Faculty of Law, University of the Free State
Abstract
English: The important contribution of the small business sector to economic growth and regional development is widely and generally acknowledged. In 1984, the South African Close Corporations Act introduced a simple, inexpensive and flexible closelyheld entity for the business consisting of a single entrepreneur or small number of participants, designed with a view to his or their reasonable needs and expectations and without burdening him or them with legal requirements that would not be meaningful in the circumstances. This example was followed with varying degrees of success in Southern Africa and Australia by legislative developments aimed at the introduction, in various guises, of new legal forms for small business. In more recent law reform initiatives in Australia and especially the United Kingdom, various options were analysed to optimise closely-held entities with a view to enhancing commercial participation and economic development through small businesses. Eventually, the somewhat less imaginative approach of merely simplifying the private company was chosen. Attention will be given to the Southern African experience of closely-held entities and then to a critical comparative analysis of and perspectives on recent developments in Australia and especially the United Kingdom.
Afrikaans: Die belangrike bydrae van die kleinsakesektor tot ekonomiese groei en ontwikkeling word wyd en algemeen erken. In 1984 het die Suid-Afrikaanse Wet op Beslote Korporasies 'n eenvoudige, goedkoop en buigsame beslote entiteit ingevoer vir die onderneming wat bestaan uit 'n enkele entrepreneur of klein groepie deelnemers, ontwerp met die oog op sy of hul redelike behoeftes en verwagtinge en sonder om hom of hulle te belas met regsvereistes wat in die omstandighede nie sinvol sou wees nie. Hierdie voorbeeld is met wisselende grade van sukses nagevolg in Suider-Afrika en Australië deur statutêre ontwikkelings gemik op die invoering van nuwe regsvorms vir kleinsake. Tydens meer resente hervormingsinisiatiewe in Australië en veral die Verenigde Koningkryk, is verskeie opsies ontleed om beslote entiteite te optimaliseer met die oogmerk om deelname aan die ekonomie en ekonomiese ontwikkeling deur middel van kleinsake te bevorder. Die keuse het uiteindelik op die ietwat verbeeldinglose benadering geval om bloot die private maatskappy te vereenvoudig. Aandag sal geskenk word aan die Suider Afrikaanse ervaring met beslote entiteite en daarna aan 'n kritiese vergelykende ontleding van en perspektiewe op resente ontwikkelings in Australië en veral die Verenigde Koningkryk.
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Henning, J. J. (2003). Optimising closely held entities to enhance commercial participation and development: the Southern African experience in comparative perspective. Journal for Juridical Science, 28(2), 1-32.