S30A Remuneration Policy

COMPANIES ACT AMENDMENTS NO. 16 OF 2024

Remuneration Policy for Public Companies and State-Owned Companies
Addition of Section 30A of the Companies Act

Public Companies and State-Owned Companies (SOCs) are required to prepare a Remuneration Policy, which must be approved every three years at an Annual General Meeting.

Public Companies and State-Owned Companies are required to prepare a Remuneration Policy.
The Remuneration Policy must be approved at an Annual General Meeting of the SOC or Public Company at least every three years.
Any material changes to the Remuneration Policy, once approved, must first be approved at an Annual General Meeting or a special meeting called for such a purpose.
If a Remuneration Policy is not approved, it must be tabled again at the next Annual General Meeting.

The amendments leave some ambiguity surrounding the status of a policy if it is not approved at an Annual General Meeting. In such an instance, the previously approved Remuneration Policy would likely continue to apply.

The amendments do not specify the content of a Remuneration Policy; however, it would likely be informed by the remuneration disclosure requirements set out in Section 30, the Remuneration Report requirements set out in Section 30B, and Principle 14 of King IV regarding the Governance of Remuneration.

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.