The new Companies Act of 2008 rings in an era in which directors are substantially more exposed to possible personal liability for company losses.
This may happen when a director:
- fails to act with the required care, skill and diligence that is required of someone at that level;
- does not disclose personal financial interests;
- abuses his/her position to gain a personal advantage;
- does not act in good faith or in the company’s best interests;
- trades under insolvent conditions; or
- approves financial statements that are materially false or misleading
to name but a few examples.
For advice on this and related topics, including induction training for directors and how to make your board of directors more effective contact our Commercial and Corporate Law Department at Goldberg & de Villiers on (041) 501 9800.