The authority of company representatives and the Turquand rule revisited

Abstract

It has become necessary to re-examine the issue of authority and representation in the sphere of company law as a result of the judgment of the Constitutional Court in Makate v Vodacom (Pty) Ltd 2016 (4) SA 121 (CC), and consequent to the enactment of the Companies Act 71 of 2008. This article analyses the authority of, and representation by, agents on behalf of companies in general, with a specific focus on the burning question of the juristic nature of ostensible authority and the Turquand rule, and their relationship to the doctrine of estoppel.