n Acta Juridica - The reform of the law of uncertificated securities in South African company law : corporate formation and corporate finance : part I




The writer points out that the new Act no longer creates artificial preferences for a specific transfer and holding model of uncertificated securities, such as the subregister model of the old Act. It enables the Central Securities Depository (CSD) rules to spell out the specific settlement model to be used. The new Act therefore balances the competing interests of the users in a practical way. However, the actual reform in the market place remains in the hands of the players. The writer submits that this is the correct approach, since only detailed and technical consultation can ensure that South Africa will have up-to-date, competitive and reliable electronic systems. The market is presented with an important opportunity to carry out ground-breaking changes in our commercial environment that can benefit shareholders and the economy as a whole. The reform is facilitated in the Act and will, indeed, be central to South Africa's economy and prosperity.


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