Abstract
Abstract : The expectations placed on directors in the performance of their functions and proper exercise of their duties is of greater importance than ever before. Given the recent spate of corporate collapses, the director’s duty of care, skill and diligence is of key concern in ensuring that best practice corporate governance prevails in a company. The South African directors’ duty of care, skill and diligence is informed by the development of the common law and partially codified by the provisions of section 76(3) of the Companies Act 71 of 2008. The provisions of section 76(3) of the Companies Act 71 of 2008 are found to be appropriate given the particular socio-economic circumstances of South Africa. Guidance should however be taken from Australian corporate law which allows for a civil penalty regime and provides for a regulator who has the power to pursue breaches of a director’s duty as a matter of public interest.
LL.M. (Corporate Law)