In a move which follows international corporate governance trends, South Africa is tightening up its own rules by proposing that audit committees of listed companies should consist only of independent non-executive directors.

The Corporate Law Amendment Bill, if passed with mean that an audit committee must have at least two members and consist only of non-executive directors of the company who must act independently, Business Day reported.

Devon Duffield, KPMG South Africa’s managing director of professional practice development, said the experience and expertise that NEDs brought to boards was invaluable and vital to the success of the economy.

However, the new measures are likely to see smaller companies struggle to find suitably qualified and competent candidates to fill the positions.

With 685 listed companies on the Johannesburg Stock Exchange, a minimum of 1,400 positions will need to be filled on audit committees.