President Cyril Ramaphosa has signed into law a change to the Companies Act of 2008 that promotes the ease of doing business to attract investors and force businesses to disclose the gap in the earnings between the highest and lowest paid persons in companies to highlight excessive executive pay.
The Companies Amendment Act and Companies Second Amendment Act will also extend the time periods within which a court may declare a director delinquent.
The acts are seen as an important tool to empower workers to fight for more equitable wage structures.
It will also compel businesses to disclose the persons owning them.
Presidents spokesperson Vincent Magwenya says, "The Companies Amendment Bill and Companies Second Amendment Bill referred to the President for assent jointly constitute initiatives by the government to make the conduct of business less burdensome, to tighten the pursuit of delinquent directors or prescribed officers for wrongdoing, including state capture, and to address disparities in earnings."
