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 Remuneration Policy is informed, among other considerations, by the remuneration disclosure requirements set out in Section 30, the Remuneration Report requirements contained in Section 30B, and the principles and recommendations relating to remuneration governance as set out in King V.

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.

We are here to help you navigate these complexities and achieve your governance goals. We invite you to familiarise yourself with our offerings and to reach out to us. Click here for a full summary of all changes made to the Companies Act through the 2024 Amendments, or visit our News page for the latest articles on Companies Act, Governance, and Compliance matters that may be relevant to you.