Tag: DirectorDuties

A September 2026 High Court judgment has reaffirmed and applied the statutory framework for holding company directors personally liable for reckless trading and conduct calculated to defraud creditors. The matter concerned a plaintiff, a private company that markets and sells process control instrumentation. The plaintiff had appointed the third defendant as a non-exclusive distributor of its products.

The publication of the King V Code on Corporate Governance for South Africa 2025 (‘the Code’) marks more than just an update - it signals a profound philosophical shift. This new Code is engineered to restore and solidify stakeholder trust by providing verifiable assurance that companies are led with integrity and are effectively managed. It is a powerful move designed to drive transparent, long-term governance impacts and fundamentally end the era of "tick-box" compliance.