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