S30 Remuneration Disclosure

COMPANIES ACT AMENDMENTS NO. 16 OF 2024

Disclosure of Directors’ and Executives’ Salaries, Bonuses, and Other Remuneration in the Annual Financial Statements
Amendments to Section 30 of the Companies Act

The Annual Financial Statements of a company that is required to be audited under the Companies Act must include details regarding the remuneration and benefits received by each of the company’s Directors, C-Suite Executives, and Heads of Businesses (i.e., prescribed officers). This information must be disclosed for each individual, who must be named.

The remuneration, salaries, and benefits of a company’s Directors, C-Suite Executives, and Heads of Businesses (i.e., prescribed officers) must be disclosed for each individual in the Audited Annual Financial Statements.

For the purpose of Section 30 of the Companies Act, “remuneration” includes a wide range of emoluments, such as fees paid for services rendered by directors to or on behalf of a company, accepting the office of director, salary, bonuses and performance-related payments, expense allowances that do not need to be accounted for by the Director, pension scheme contributions, options for the subscription of securities, and financial assistance.

The amendments to Section 26 of the Companies Act also allow members of the public to inspect and copy all of a company’s Annual Financial Statements issued in the last seven years, unless the Annual Financial Statements were internally prepared for a company with a Public Interest Score of less than 100, or the Annual Financial Statements were independently prepared for a company with a Public Interest Score of less than 350.

The amendments further stipulate that when the Remuneration Report of public and State-Owned companies is subject to an audit, the background statement of the Remuneration Report must not be included in such an audit.

The Companies Act Amendments 2024:

Pertinent changes were made to our South Africa Companies Act recently after the Companies Amendment Act 2024, No. 16 and the Companies Act Second Amendment, 2024 No. 17 were ascended into law on 25 July 2024.

The amended provisions are not yet operational and will come into effect after President Cyril Ramaphosa makes proclamation in the Gazette as to the effective date.

Statucor continues to unpack the amendments and the effect that they may have on our valued clients, and we look forward to publishing further communications on our observations in future. Click here for a full summary of all changes made to the Companies Act through the 2024 Amendments or view our News page for our latest articles on the Companies Act, Governance and Compliance matters that may be pertinent to you.