Companies Act Amendments Signed into Law

The President has signed into law amendments to the Companies Act of 2008 that facilitate doing business, and impose greater corporate transparency on the earnings gap between the highest and lowest paid employees in a company.

Amendments include the preparation and presentation of a remuneration report by all public and state-owned companies, the inclusion of a social and ethics committee report, and a decrease in auditor rotation.

The Companies Amendment Act streamlines company law to be clear, user-friendly and less burdensome on conducting business. This reform is important for the efficient and effective conduct of the domestic economy, as well as the attraction of foreign investment.

The law also addresses public concerns regarding high levels of inequalities in society by introducing better disclosure of senior executive remuneration and the rationality of the remuneration.

Public and state-owned companies are now required to prepare and present a remuneration policy for shareholder approval.

Further information may be obtained on:
https://www.thepresidency.gov.za/president-assents-laws-advancing-ease-doing-business-and-corporate-transparency