Director duties in the context of a group of companies

Abstract

The Companies Act 71 of 2008 plays a very significant role in encouraging transparency and high standards of corporate governance by promoting efficient and responsible ethical management of companies for purposes of developing the South African economy. Generally corporate governance relates to the manner in which companies are “directed and controlled”. The Companies Act 71 of 2008 has partially codified the duties in South Africa. Although for many years director duties have been regarded as a problematic area of company law by commentators, these duties play a vital role in ensuring good corporate governance is promoted in companies. This study examines various aspects of director duties, both statutory and common law, in the context of company groups. The study is further bolstered by a comparative analysis of the United Kingdom’s approach to director duties.