New director rules could lead to vacancies
A progressive attempt to partially codify the duties and responsibilities of directors in SA could lead to vacancies, causing companies to have less than the minimum number of prescribed directors.
Commercial law experts Werksmans cautioned during a conference on Wednesday (5 October 2011) that companies scrutinise the provisions of the new Companies Act 2008, effective from May 2011, dealing with the eligibility and disqualification of directors, prescribed officers, company secretaries and auditors.
"This is because any such person who, in terms of the new Act, is ineligible to hold, or disqualified from holding, the office in question will be regarded as having resigned from that office as from the effective date [May 2011]."