Directors duties and liability under the new Companies Act

The role of company directors has changed quite dramatically with the inception of the new Companies Act in May this year.

In terms of the previous Companies Act 61 of 1973 (the “old Act”), a distinction was drawn between executive and non–executive directors whilst the new Act does not draw any distinction. This means that directors previously not bound by statutory and common law duties will now be bound and have to comply; or face serious ramifications.

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