COMPANIES AMENDMENT BILL, 2021

The Public Affairs Research Institute (PARI), supported by the Public Service Accountability Monitor (PSAM), submitted public comments on the Companies Amendment Bill, 2021. The submission focuses on how mandatory disclosure of beneficial ownership information can enhance transparency in public procurement and increase the accountability of public servants by exposing hidden conflicts of interest.

• PARI supports the proposed amendments to Section 56 of the Act regarding the definition of a 'true owner,' noting that these changes align with the Financial Intelligence Act, the Financial Action Task Force (FATF), and South Africa's G20 and Open Government Partnership commitments. These amendments are expected to improve the detection of fraud, money laundering, collusion, corruption, and conflicts of interest in public procurement, while enabling civil society to better monitor government spending.
• The current regulatory framework is insufficient for identifying public servants who conduct business with the state because the Companies and Intellectual Property Commission (CIPC) only records directors, not shareholders or ultimate beneficiaries. This gap allows public servants to hide conflicts of interest behind corporate vehicles. PARI highlights a Public Service Commission report from February 2021 stating that 638 (21%) of Senior Management Service (SMS) members with company interests failed to disclose them, with 11% being repeat offenders.
• Beneficial ownership transparency would extend accountability beyond the civil service to include Cabinet members, Deputy Ministers, MECs, and members of Parliament, ensuring compliance with the Executive Members' Ethics Act 82 of 1998 and the Code of Ethical Conduct and Disclosure of Financial Interests.
• PARI argues that beneficial ownership information should be freely and publicly available in an open data format, rather than requiring PAIA requests, to maximize its utility for verification. Regarding ownership thresholds, PARI suggests that South Africa should follow Botswana's example by not adopting a minimum percentage threshold for disclosure, arguing that even a single share should trigger registration to prevent individuals from splitting ownership to avoid detection.

APA

Public Affairs Research Institute (2021). COMPANIES AMENDMENT BILL, 2021. https://pari.org.za/wp-content/uploads/2021/11/ACP_20211031_PARI-PSAM_PublicComments_Companies-Act_v1.015.pdf

Chicago

Public Affairs Research Institute. COMPANIES AMENDMENT BILL, 2021. 2021. https://pari.org.za/wp-content/uploads/2021/11/ACP_20211031_PARI-PSAM_PublicComments_Companies-Act_v1.015.pdf.

Wikipedia

{{cite press release |author=Public Affairs Research Institute |title=COMPANIES AMENDMENT BILL, 2021 |date=2021 |url=https://pari.org.za/wp-content/uploads/2021/11/ACP_20211031_PARI-PSAM_PublicComments_Companies-Act_v1.015.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@misc{publicaffairsresearchinstitute2021companies, author = {{Public Affairs Research Institute}}, title = {{COMPANIES AMENDMENT BILL, 2021}}, publisher = {Public Affairs Research Institute}, year = {2021}, url = {https://pari.org.za/wp-content/uploads/2021/11/ACP_20211031_PARI-PSAM_PublicComments_Companies-Act_v1.015.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }