Mavuso has put forward that while BLSA understands the spirit behind the Draft Companies Amendment Bill, it poses harm as it diminishes South Africa’s attractiveness in doing business.
Business Leadership South Africa’s (BLSA) CEO, Busi Mavuso published an opinion piece on Wednesday, 13 October 2021. She highlighted how the Draft Companies Amendment Bill approved by Cabinet in September 2021 added major administrative burdens on companies, while also shrinking South Africa’s attractiveness as a place to do business.
The bill will require that companies disclose income ratios of workers, as well as identify shareholders who were the “true or beneficial” owners of shares in the company. She also noted that whilst BLSA understands the spirit behind this move of disclosing income ratios, it has made it clear that it does not support this approach as it finds it meaningless.
Mavuso believes that companies should, instead, be encouraged to employ more low-skilled workers and that overall both requirements of the bill bring about elements that diminish the attractiveness of doing business in SA.
See the post below.
The Draft Companies Amendment Bill approved by cabinet last month, adds significant administrative burdens on companies while diminishing SA’s attractiveness as a place to do business, says @BusiMavuso2. https://t.co/tYhqREGteG
— Business Leadership South Africa (@BLSA_Official) October 13, 2021