Much has been said in the media recently about the conduct of MPs and their participation in corruption and fraudulent behaviour, but the private sector has moved on seemingly unscathed. Company directors should be aware of their roles and responsibilities in terms of the Companies Act. A company may recover losses, damages or costs sustained from the directors, if they were present at a meeting or participated in making a decision at a meeting at which there was noncompliance with the formalities prescribed in the act. Many companies take out indemnity insurance to protect their directors, but they should note that this does not cover them if they were convicted of an offence. Indemnification is not allowed if there is an intent to defraud and if there was any act or omission to mislead the relevant parties, if there has been wilful misconduct or wilful breach of trust, or if the director is liable for an offence or fine in terms of national or international legislation. Directors ...
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