THE NEW COMPANIES AMENDMENT BILL: KEY CHANGES AFFECTING SOUTH AFRICAN BUSINESSES

Scenario example:

You’re a director of a medium-sized business. An investor requests information on your company’s beneficial ownership, but you’re unsure if you’re legally obliged to provide it. With the new Companies Amendment Bill in 2025, the answer is yes.

Legal Framework

The Companies Amendment Bill introduces several key reforms:

• Beneficial Ownership Disclosure: Companies must keep updated records.

• Shareholder Rights: Enhanced access to company documents.

• Corporate Governance: Stricter rules on director conduct and financial disclosure.

Remedies & Compliance Steps

• Review internal compliance systems.

• Update shareholder agreements.

• Ensure directors are properly trained on their obligations.

• Seek professional advice to avoid penalties or disputes.

Conclusion

The Companies Amendment Bill marks a shift towards transparency and accountability in corporate governance.

📩 For legal assistance with corporate compliance, contact us at info@lbwinc.co.za

By LBW Associate

While every reasonable effort is taken to ensure the accuracy and soundness of this article, neither the writer nor LBW shall bear responsibility for consequences of actions taken based on this content. The article is for informational purposes only.