A Critical Analysis of the Liability of Directors in Light of the Unwarranted Shareholder Involvement in South African State-Owned Enterprises

Abstract

South African state-owned enterprises are continually in distress and are failing to meet their objectives. Most of the failures can be attributed to corporate governance contraventions that take place within these enterprises. The regulatory framework of South African state-owned enterprises is wide and diverse in nature. The dissertation will critically analyse the liability of directors in light of the unwarranted shareholder involvement in South African state-owned enterprises. An overview of the current governance trends within these enterprises will be provided with the view of analysing the existence of effective corporate governance practices. A critic in relation to the current state of governance within these institutions will be provided. The study will outline will the role of the board of the directors and the role of government as a shareholder in state-owned enterprises. And also provide the mechanisms that can be utilized to ensure accountability within state-owned enterprises.