DECISION TREE | The new ‘two-strike’ rule under section 30B of the Companies Act
Introduction and scope
Section 30B of the Companies Act 71 of 2008 (Companies Act) introduces a mandatory mechanism (commonly referred to as the “two-strike rule”) to ensure meaningful shareholder engagement on executive remuneration. This provision came into effect on 22 May 2026.
Applicability
This decision tree applies to the following entities:
- Public companies (as defined in the Companies Act)
- State-owned companies (as defined in the Companies Act)
The remuneration report (section 30B(3))
The decision tree
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