Business Law Amendment Act, 2020


Introduction


The President assented to the Business Law Ammendment Act, 2020 on 18th March. The law makes ammendments to 16 different  business laws to make it easier to do business and was timely because it resolved certain issues that would have posed a problem during the Covid 19 global pandemic.

Ammendments


Companies will no longer require a company seal. 

An Insolvency Practitioner should provider a creditor with information within the new statutory limit of 5 days.

Another ammendment relates to Moratoriums. Courts can now take into account the nature of the goods in question (such as perishable) when deciding on applications related to lifting a moratium.

The Land Registration Act which regulates transactions involving land was ammended to include various forms of electronic signatures.

The law was ammended to enforce rules which for years have been flouted in the construction industry leading to negligence, malpractice.

For the first year of business, organisations with less than 100 employees are exempt from registering with the National Council for Occupational Safety and Health and paying the requisite fees for registration.

Electronic signatures can be used in Title Documents. The Communications Authority is now tasked with licensing electronic signature providers and ensuring that confidentiality of information is kept in the use of such signatures.

 The Survey Act is amended to also allow for various electronic signatures and security features to safeguard these signatures.

  • Amendments to the Law of Contract

The law ammends Section 3(6) of the Law of Contract Act to allow for electronic or Advanced Digitial Signatures to be used in executing documents and paves the way for electronic contracting.

  • Amendment to the Industrial Training Act

The 5% Training level penalty has been reduced for newly registered companies so that newly incorporated companies do not have to pay this fee in the first year of operation. It is not also payable by the year. Previously it was payable by the month but now it has been compounded to an annual basis. 

  • Amendment to the Registration of Documents Act

The Act, one of the oldest in the country is ammended to allow for electronic documents and signatures.

 Legislation


Business Law Amendment Act, 2020


Share this Issue