The Companies Act No. 71 of 2008: Delinquency of directors

The Companies Act No. 71 of 2008 provides that a court must declare a director delinquent if:

  • he or she has consented to act as director while ineligible or disqualified –has acted as a director in a manner contrary to an order of probation; or
  • has acted as a director in a manner amounting to gross negligence, willful misconduct or breach of trust.

The following may, inter alia, apply to a court for an order declaring a person delinquent or under probation:

  • a company;
  • a shareholder;
  • a director;
  • a company secretary or prescribed officer of a company;A registered trade union that represents employees of the company; or
  • another representative of the employees of a company.

A person who has been declared a delinquent is disqualified from being a director of any company for between 7 years and life.


06 October 2011