From CompliNEWS | Financial Service Intelligence Watch
Key updates on the Companies Amendment Acts effective 1 January 2025
As of 1 January 2025, several provisions of the 2024 Companies Amendment Act and the Companies Second Amendment Act have officially come into effect, introducing significant changes to South African company law, writes Compli-Serve.
The Companies Second Amendment Act specifically extends the time bar for applications under section 162(2) of the Companies Act. This section governs court orders to declare directors delinquent or place them under probation, providing more flexibility for such applications to be made.
The primary objectives of the Companies Amendment Act include:
- Removing Obstacles to Business Activity – Simplifying processes and addressing barriers that hinder legitimate business operations.
- Ensuring Greater Equity – Balancing interests between directors, senior management, shareholders, and workers. This includes introducing measures for increased transparency and fairness in the disclosure of senior executive remuneration and ensuring its reasonableness.
- Addressing Policy Concerns – Refining the role and effectiveness of social and ethics committees to better align with evolving governance and ethical standards.
These amendments are expected to promote a more transparent, equitable, and business-friendly corporate environment in South Africa. Companies are encouraged to review their governance frameworks and ensure compliance with the new provisions.