<a href="/users/fasken">1069</a>

Directors beware! The court declares Dudu Myeni (former SAA Chair) a Delinquent Director

• 3 July 2020
• <a href="/users/fasken">1069</a>

It is a common principle within South African company law that a company is managed by its board of directors (“ Board ”). The Board bears the responsibility for the functioning and management of the company and is ultimately accountable for the performance thereof. However, the Board’s collective responsibility does not exclude the individual responsibility and liability of each of the directors. Where the company performs poorly due to the dishonesty, recklessness or gross negligence of the Board, the individual directors may be held jointly and severally liable for breaching their fiduciary duties as contemplated in the Companies Act, 2008 (“ Companies Act ”), and for those individuals who are directors of State Owned Entities (“ SOEs ”), the Public Finance Management Act, 1999 (“ PFMA ”).