COMPANIES AMENDMENT BILL APPROVED FOR TABLING IN PARLIAMENT

COMPANIES AMENDMENT BILL APPROVED FOR TABLING IN PARLIAMENT

• 06 July 2023
• Trade, Industry & Competition
• SA Legal Academy

Cabinet has approved the Companies Amendment Bill, which will be introduced in Parliament once routine pre-tabling procedures have been followed. These include the publication of an explanatory summary in the Government Gazette.

Meanwhile, according to a media statement on the Cabinet meeting at which the Bill was considered, it seeks to:

• ‘reduce the regulatory and administrative burdens to business owners’, thus ‘enhanc(ing) South Africa’s attractiveness to potential investors’
• close certain ‘gaps’ in the Act with a view to curbing money laundering
• strengthen disclosure requirements in the Act, and
• ‘enhance … shareholder powers in a company’ by ‘clarify(ing) (the) responsibilities … (of) directors and senior management on the one hand, and shareholders on the other’.

While ‘most’ of the amendments proposed are apparently ‘technical in nature’ and focus on ‘streamlining and clarifying administrative issues’, the statement nevertheless also alludes to provisions intended to address ‘public concerns’ about ‘excessive remuneration … at the highest levels of a company’.

The Bill is not yet publicly available.

• media statement

Published by SA Legal Academy Policy Watch

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