Ramaphosa amends Companies Act for greater transparency and accountability

Johnathan Paoli

President Cyril Ramaphosa signed into law amendments to two acts, in order to promote the ease of doing business and imposing greater corporate transparency on earning gaps between the highest and lowest paid workers in a company.

Spokesperson for the President, Vincent Magwenya said on Sunday, said the Companies Amendment bill and the Companies Second Amendment bill constituted initiatives by the government to make the conduct of business less burdensome, to tighten the pursuit of delinquent directors for wrongdoing, including state capture, and to address the disparities in earning.

Magwenya said the proposed Companies Amendment Act is expected to streamline company law to be clear and user-friendly and the reform is important for the efficient and effective conduct of the domestic economy as well as attracting foreign investment.

In addition, he said the new law aimed at achieving equity between directors and senior management on the one hand