SA firms and SOEs need more than governance tick-boxes
Sugar producer Tongaat Hulett (https://protect-za.mimecast.com/s/EsUGCJZKJghB3X0XtVfHFX?domain=fin24.com) is considering whether to sue several senior executives to recover bonuses and benefits they accrued while presiding over “undesirable accounting practices” at the company.
If the board decides to proceed with civil action, Section 77 (https://protect-za.mimecast.com/s/4Lz0CKO70jHDzJ3Juv9McK?domain=gov.za) of the Companies Act of 2008 — which makes provision for directors to be held liable for financial losses on their watch — will no doubt be crucial to the case. The board has the opportunity to send a strong message that corporate governance lapses will not go unpunished, and that executives will be held accountable even after they leave the company. ..