Director liability in South Africa and how to guard against these risks
Director liability in South Africa refers to the legal responsibility that directors of companies have for the actions and decisions of the companies they lead. Under South African law, directors can be held liable for a variety of legal wrongs, including fraud, breach of contract, and negligence. By the other reliability in trademark registration, trademark registration renewal online also come in front with all the duties. Fiduciary Duty One of the main ways that directors can be held liable in South Africa is through the principle of “fiduciary duty.” This principle holds that directors have a legal duty to act in the best interests of the company and its shareholders. If a director breaches this duty by, for example, taking advantage of the company for personal gain, they can be held liable for any resulting losses. Reckless Trading The Companies Act also penalises and holds directors personally liable to the company for any loss incurred through knowingly carrying on ...