Abstract
The constantly changing modern corporate industry has succumbed to the numerous companies collapsing in the authority of their entrusted custodians appointed as directors such as the recent Hlumisa case where action was brought against the African Bank Investments Limited directors for an order in terms of section 218(2) of the Companies Act 71 of 2008,1 holding the directors jointly and severally liable for damages suffered as a result of the diminution in the value of their shares in ABIL, on account of the directors’ alleged misconduct in relation to the affairs of the company.2 In recent times reports and cases shown a significant rise in the active call for the personal liability of the board of directors. This became pivotal after the financial crisis of 2008 and the global recession. The collapse of companies in South Africa has resulted in the government and regulatory agencies instilling more focus on ensuring ways to hold directors accountable for actions that result in any form of loss or damage. In South Africa, this can be implemented by not only the 2008 Act but also the Companies Act 61 of 19733 which caters for the civil and criminal personal liability of the directors in question...
LL.M. (Corporate Law)