Practical accounting insight: Companies should review their financial reporting and annual general meeting processes following the commencement of further provisions of the Companies Amendment Act 16 of 2024 on 22 May 2026.
The changes are particularly relevant to public companies, state-owned companies and finance teams responsible for preparing annual financial statements, remuneration information and shareholder meeting documentation. The amendments introduce additional requirements for remuneration policies, remuneration reports and disclosures relating to directors and prescribed officers. The commencement proclamation is available from the South African Government, while the underlying legislation is set out in the Companies Amendment Act 16 of 2024.
What changed for financial reporting
SAICA notes that the amendments now require financial statements to include remuneration and benefits received by each individually named director and prescribed officer, where the relevant Companies Act requirements apply. This means finance teams should not treat remuneration reporting as a separate governance exercise only. The information must be supported by reliable payroll, benefits and accounting records.
For public companies and state-owned companies, the amended framework also introduces a requirement to prepare and present a remuneration policy for approval at the annual general meeting. A remuneration report covering the preceding financial year must also be prepared and presented for shareholder consideration. SAICA’s technical guidance summarises the practical implementation implications.
Who should review their processes
- Public companies and state-owned companies preparing for an annual general meeting.
- Finance teams responsible for annual financial statements and directors’ remuneration disclosures.
- Payroll and human resources teams maintaining salary, bonus, benefit and incentive records.
- Company secretarial and governance teams coordinating remuneration policies, reports and shareholder resolutions.
- Auditors and advisers reviewing whether disclosures are complete and supported by appropriate records.
What businesses should check now
Start by confirming whether the company falls within the provisions that have commenced and whether its next financial year-end or annual general meeting will require updated documentation. The Companies Amendment Act includes different requirements for different types of companies, so businesses should avoid applying a one-size-fits-all checklist.
Next, reconcile the remuneration information held by payroll, finance and human resources. Check salary, bonuses, allowances, employer contributions, share-based awards and other benefits against the general ledger and supporting agreements. Differences should be resolved before the annual financial statements or remuneration report is finalised.
Companies should also review their AGM timetable. The remuneration policy and remuneration report may require board approval, shareholder presentation and formal voting. These steps should be built into the financial reporting calendar rather than addressed shortly before the meeting.
Practical next steps for SMEs and larger companies
- Map the company’s legal form, reporting obligations and relevant commencement provisions.
- Assign ownership for remuneration data across finance, payroll, HR and company secretarial functions.
- Document a reconciliation between payroll records, accounting entries and proposed disclosures.
- Review board and AGM papers for the remuneration policy and remuneration report requirements.
- Obtain professional advice where the company’s obligations or reporting scope are uncertain.
The immediate priority is not simply producing another report. It is creating a dependable audit trail from employment records and accounting entries through to the annual financial statements and shareholder documentation. Businesses can also explore YFP’s accounting and business advisory services for support with reporting processes and financial controls.
