More transparency or more trouble? A look at the Companies Amendment Bill, 2021

By |2022-07-26T15:55:26+01:00July 26th, 2022|Commercial Law|

If passed, the Companies Amendment Bill will be the first substantive amendment to the Companies Act since it came into force in 2011 The Bill includes a contentious requirement for large companies to disclose their executive remuneration policy to the shareholders for approval including a ratio comparing the compensation of the highest-earning employees with that of the lowest-earning employees The Bill controversially imposes reporting requirements on large companies to make certain company records, such as annual financial statements and shareholder information relating to true share ownership, available to third parties including government institutions, labour unions and the general public The Bill tightens the requirements relating to corporate disclosure of true share ownership by obliging companies to request from registered shareholders information about the persons who in fact control their shareholdings There is no clear timing for the enactment of the Bill