Summary
The Department of Trade, Industry and Competition tabled two crucial business-related bills in August 2023, the Companies Amendment Bill and the Companies Second Amendment Bill to amend the Companies Act (2008). The president enacted these two bills into law in July 2024. These address a range of issues including issuing of new shares, providing financial assistance to subsidiaries and share buybacks. But they also make it easier to disqualify directors, mandate remuneration disclosure and require all public and state-owned companies to prepare and present a remuneration policy for shareholders’ approval which must include pay-gap disclosures listing the highest paid and lowest paid employees.
View DetailsIs it working?
Too early to assess efficacy but some sections of these two laws have been enforced since December 2024. All sections of the Companies 2nd Amendment Act (2024) are now in force, while several sections of the Companies Amendment Act (2024) are in force.
Actions
The president signed the two bills into law.
Are there plans?
To promote transparency and accountability in corporate practices.
Is it on the agenda?
Corporate reform
Goals
These pieces of legislation are aligned with the FAFT's requirements and in response to the recommendations of the Zondo commission in addressing money laundering.
Summary
The Department of Trade, Industry and Competition tabled two crucial business-related bills in August 2023, the Companies Amendment Bill and the Companies Second (2nd) Amendment Bill to amend the Companies Act (2008). The president enacted these two bills into law in July 2024. These address a range of issues including issuing of new shares, providing financial assistance to subsidiaries and share buybacks. But they also make it easier to disqualify directors, mandate remuneration disclosure and require all public entities or state-owned companies to prepare and present a remuneration policy for shareholders’ approval which must include pay-gap disclosures listing the highest paid and lowest paid employees.
View DetailsIs it working?
Too early to assess efficacy but some sections of these two laws have been enforced since December 2024. All sections of the Companies 2nd Amendment Act (2024) are now in force, while several sections of the Companies Amendment Act (2024) are in force. There are, however, significant items/sections/provisions under the Companies Amendment Act that have not come into effect.
Actions
The president signed the two bills into law but next steps are to ensure that significant items/sections/provisions under the Companies Amendment Act that come into effect. These include: Disclosure of company records - Section 25: Requirements for the disclosure of company records, such as the CIPC publishing notices indicating where a company's records are available for inspection - Section 26: Increased third-party access to a company's records and documents, including the MOI, directors' records, annual financial statements, securities register and beneficial ownership register - Section 30: This section seeks to enhance transparency and accountability by mandating that the annual financial statements, which are subject to audit, must name each director and prescribed officer whose remuneration is disclosed. This means the remuneration figures must be linked clearly to the named individuals. • Duty to prepare and present the company’s remuneration policy and report - Section 30A: This section requires public entities or state-owned companies to prepare and present a remuneration policy for shareholders’ approval. This policy must be presented to shareholders for approval at an Annual General Meeting (AGM) by ordinary resolution. - Section 30B: This section requires public entities or state-owned companies to prepare a remuneration report annually for presentation and approval at the AGM, reflecting the previous financial year.
Are there plans?
Complete, the legislation has been enacted.
Is it on the agenda?
Part of the Zondo commission's recommendations to address money laundering, reinforced by FATF requirements.
Goals
Part of the FAFT's requirements for SA to be removed from the gray list with the underlying goal to strengthen the country's anti-money laundering legislation and to promote transparency and accountability in corporate practices.
Summary
The Department of Trade, Industry and Competition tabled two crucial business-related bills in August 2023, the Companies Amendment Bill and the Companies Second (2nd) Amendment Bill to amend the Companies Act (2008). The president enacted these two bills into law in July 2024. These address a range of issues including issuing of new shares, providing financial assistance to subsidiaries and share buybacks. But they also make it easier to disqualify directors, mandate remuneration disclosure and require all public entities or state-owned companies to prepare and present a remuneration policy for shareholders’ approval which must include pay-gap disclosures listing the highest paid and lowest paid employees.
View DetailsIs it working?
Too early to assess efficacy but some sections of these two laws have been enforced since December 2024. All sections of the Companies 2nd Amendment Act (2024) are now in force, while several sections of the Companies Amendment Act (2024) are in force. There are, however, significant items/sections/provisions under the Companies Amendment Act that have not come into effect.
Actions
The president signed the two bills into law but next steps are to ensure that significant items/sections/provisions under the Companies Amendment Act that come into effect. These include: Disclosure of company records - Section 25: Requirements for the disclosure of company records, such as the CIPC publishing notices indicating where a company's records are available for inspection - Section 26: Increased third-party access to a company's records and documents, including the MOI, directors' records, annual financial statements, securities register and beneficial ownership register - Section 30: This section seeks to enhance transparency and accountability by mandating that the annual financial statements, which are subject to audit, must name each director and prescribed officer whose remuneration is disclosed. This means the remuneration figures must be linked clearly to the named individuals. • Duty to prepare and present the company’s remuneration policy and report - Section 30A: This section requires public entities or state-owned companies to prepare and present a remuneration policy for shareholders’ approval. This policy must be presented to shareholders for approval at an Annual General Meeting (AGM) by ordinary resolution. - Section 30B: This section requires public entities or state-owned companies to prepare a remuneration report annually for presentation and approval at the AGM, reflecting the previous financial year.
Are there plans?
Complete, the legislation has been enacted.
Is it on the agenda?
Part of the Zondo commission's recommendations to address money laundering, reinforced by FATF requirements.
Goals
Part of the FAFT's requirements for SA to be removed from the gray list with the underlying goal to strengthen the country's anti-money laundering legislation and to promote transparency and accountability in corporate practices.
Summary
. Among other objectives, the bills aim to address the vast differentials in pay, by improving disclosure of senior executive remuneration.
View DetailsIs it working?
No action yet.
Actions
Work in progress. Bills going through parliament. To amend the Companies Act.
Are there plans?
To promote transparency and accountability in corporate practices.
Is it on the agenda?
Corporate reform.
Goals
The bill is going through parliament
Summary
The Department of Trade, Industry and Competition tabled two crucial business-related bills in August 2023, the Companies Amendment Bill and the Companies Second Amendment Bill to amend the Companies Act. The president enacted these two bills into law in July 2024. These address a range of issues including issuing of new shares, providing financial assistance to subsidiaries and share buybacks. But they also make it easier to disqualify directors, mandate remuneration disclosure and require all public and state-owned companies to prepare and present a remuneration policy for shareholders’ approval which must include pay-gap disclosures listing the highest paid and lowest paid employees.
View DetailsIs it working?
Too early to assess efficacy.
Actions
The president signed the two bills into law.
Are there plans?
To promote transparency and accountability in corporate practices.
Is it on the agenda?
Corporate reform
Goals
These pieces of legislation are aligned with the FAFT's requirements and in response to the recommendations of the Zondo commission in addressing money laundering.
Summary
The Department of Trade, Industry and Competition tabled two crucial business-related bills in August 2023, the Companies Amendment Bill and the Companies Second Amendment Bill to amend the Companies Act. The president enacted these two bills into law in July 2024. These address a range of issues including issuing of new shares, providing financial assistance to subsidiaries and share buybacks. But they also make it easier to disqualify directors, mandate remuneration disclosure and require all public and state-owned companies to prepare and present a remuneration policy for shareholders’ approval which must include pay-gap disclosures listing the highest paid and lowest paid employees.
View DetailsIs it working?
Too early to assess efficacy.
Actions
The president signed the two bills into law.
Are there plans?
To promote transparency and accountability in corporate practices.
Is it on the agenda?
Corporate reform
Goals
These pieces of legislation are aligned with the FAFT's requirements and in response to the recommendations of the Zondo commission in addressing money laundering.
Summary
The Department of Trade, Industry and Competition tabled two crucial business-related bills in August 2023, the Companies Amendment Bill and the Companies Second Amendment Bill to amend the Companies Act. The president enacted these two bills into law in July 2024. These address a range of issues including issuing of new shares, providing financial assistance to subsidiaries and share buybacks. But they also make it easier to disqualify directors, mandate remuneration disclosure and require all public and state-owned companies to prepare and present a remuneration policy for shareholders’ approval which must include pay-gap disclosures listing the highest paid and lowest paid employees.
View DetailsIs it working?
Too early to assess efficacy.
Actions
The president signed the two bills into law.
Are there plans?
To promote transparency and accountability in corporate practices.
Is it on the agenda?
Corporate reform
Goals
These pieces of legislation are aligned with the FAFT's requirements and in response to the recommendations of the Zondo commission in addressing money laundering.