Commencement of Executive Remuneration Provisions Under Companies Amendment Act

Posted 01 June 2026 Written by Acts Online
Category Corporate Law

Brought to you by SA Accounting Academy: Sections 5, 6, and 19 of the Companies Amendment Act, No. 16 of 2024 have officially commenced, introducing rigorous new executive remuneration disclosure and shareholder oversight requirements for public and state-owned companies.

In terms of Proclamation No. 313 published in Government Gazette No. 54722, the President has declared 22 May 2026 as the commencement date for sections 5, 6, and 19 of the Companies Amendment Act, No. 16 of 2024. These sections follow the initial implementation of several other provisions of the same Amendment Act which came into force in December 2024.

The newly commenced sections focus heavily on enhancing corporate governance, transparency, and shareholder alignment regarding executive compensation. Public and state-owned companies are now legally mandated to prepare and present detailed annual remuneration reports. These reports must be structured into three distinct parts:

  • A background statement;
  • The company’s formal remuneration policy; and
  • An implementation report detailing exactly how the policy was applied during the financial year.

Furthermore, the amendments introduce a “two-strike rule” regarding shareholder votes on remuneration reports. Under this mechanism, if a company’s remuneration report or policy is rejected by a specified margin of shareholder votes over consecutive annual general meetings, specific governance consequences are triggered, significantly strengthening shareholder oversight over executive pay.

Click here to download the Companies Amendment Act, No. 16 of 2024.

Click here to download Government Gazette No. 54722 (Proclamation No. 313).

What this means for you, your business, or your clients

  • For yourself: No direct individual obligations; professional development must be updated to master the new executive remuneration reporting and voting rules.
  • For your business: Advisory and audit firms must immediately update their compliance checklists and audit programs to verify that public and state-owned clients comply with the new three-part remuneration reporting format and the two-strike voting rules.
  • For your clients: Public and state-owned corporate clients must urgently align their governance frameworks, draft compliant annual remuneration reports, and prepare for the heightened shareholder scrutiny and potential consequences of the two-strike rule.

Originally published at https://accountingacademy.co.za/news/read/companies-amendment-bill-2026

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