The Department of Trade, Industry and Competition is trying once again to change the Companies Act, three years after its previous attempt in 2018, which led to a three-year back and forth between government and interested parties The department published the Companies Amendment Bill on Friday for public comment after discussion between government and stakeholders.
According to the dtic, the changes or amendments in the latest Bill are aimed at improving ease of doing business regarding certain provisions of the Act, providing greater transparency on wage ratios at firm level, and addressing true or beneficial ownership of companies to overcome money laundering challenges.
The changes are designed to make it easier to do business by providing legal certainty where necessary and provide greater flexibility to companies in certain circumstances. Some unnecessary provisions are also removed.Greater transparency on wage differences According to the amendments in the Bill, certain categories of firms are required to disclose information on the pay of directors and prescribed officers. Companies also have to disclose the average remuneration of all employees and the difference between the total pay of the top 5% of highest paid employees and the total payment of the bottom 5% of the lowest paid employees. Shareholders have to approve the company’s remuneration or pay policy.
“We are releasing this Bill for public comment before cabinet considers it for approval. The amendments seek to update the Companies Act in light of developments in the field, to respond to public concerns and improve the ease of doing business,” Ebrahim Patel, minister of trade, industry and competition says.