Companies bill to enhance corporate transparency

Last Friday, South Africa's President, Cyril Ramaphosa, put his signature on amendments to the Companies Act, bringing about significant changes that aim to enhance corporate transparency. The amended Act introduces new measures to promote transparency regarding remuneration disparities between the highest and lowest-paid workers within companies. Moreover, it extends the time frame for declaring a director delinquent from 24 to 60 months, highlighting a shift towards increased accountability in the corporate sector. To shed light on the implications of these changes, CNBC Africa sat down with Carina Wessels, the Executive for Governance, Legal Compliance, and Sustainability at Alex Forbes. Wessels shared her insights on the amended Act and its implications, particularly for Retirement Fund Trustees. The amendments are poised to impact governance practices across the corporate landscape in South Africa, driving the need for Trustees to stay informed and proactive in their decision-making processes. Carina emphasized the importance of understanding the new regulations and their alignment with the ESG (Environmental, Social, and Governance) considerations that Trustees are mandated to uphold. Notably, she highlighted the significance of remuneration policies and the voting power that Trustees hold in influencing key decisions at annual general meetings. Trustees are now urged to actively engage in voting on resolutions related to remuneration, as the outcomes could have lasting repercussions for companies and their governance structures. The amendments further underscore the notion that Trustees cannot simply delegate their responsibilities to service providers or asset managers; accountability remains firmly with them, necessitating a deep understanding of the evolving regulatory landscape. With these changes in place, Trustees must navigate the shifting dynamics of corporate governance with diligence and foresight, ensuring that they uphold their fiduciary duties to the members they represent. As South Africa's corporate sector adapts to the enhanced transparency requirements, Retirement Fund Trustees stand at the forefront of driving responsible decision-making that aligns with the evolving regulatory framework.