Abstract
M.Com. (Business Management)
The subject of this study is the legal position of the company director in South Africa and the influence of the law on the exercise of his management function in the business entity. The law as it pertains to the director is often thought to be unclear and it is a fact that many directors are not aware of all their duties. It is thus necessary to find out what the legal position is and the director must be aware of what the effect of this 'viII be on his function to manage. Is it possible that changes in the law can
lead to more efficient management? In this study the conclusion is made that the legal position of the director is quite clear. However, a few changes to the legal position are recommended. The South African director has stringent duties of loyalty and good
faith, but very light obligations of skill and diligence. It is recommended that a higher degree of care and skill should be required from the director. A distinction is drawn between the executive director and non-executive director. The main difference being that the executive director participates in the day-to-day management of the company's affairs or of a portion thereof, while the non-executive director does not. For this reason the executive director is the focus of the study. The focus of his management function is
strategy formulation. He must keep the undertaking on track through effective strategic management. We are entering the information age where flexibility, creativity and innovation will determine success. Third-wave management will be critical in the future
and the director will have to adopt this new approach to management to make sure that his undertaking will be adaptable to change.