The Companies Amendment Act 16 of 2024, through Sections 30A and 30B, introduces a more binding and shareholder-focused approach to remuneration governance for public and state-owned companies.
Section 30A requires the forward-looking remuneration policy to be approved by shareholders and generally remain in place for up to three years, while material changes require further shareholder approval.
Section 30B requires an annual remuneration report comprising the background statement, remuneration policy and implementation report, supported by clear and defensible remuneration disclosures and pay-gap data.
The changes place greater emphasis on consistent definitions of Total Remuneration and employee populations, reliable data, clear governance responsibilities and proactive shareholder engagement. Companies should therefore treat Sections 30A and 30B not simply as a compliance exercise, but as an integrated process requiring alignment across policy, governance, data, disclosure, shareholder engagement and AGM voting.
Read the full article for further insight into the practical application and implications of sections 30A and 30B of the Companies Amendment Act: S30A & B Practicalities