Role and responsibilities of Directors - Pdf

The purpose of this section is not to discuss the complete Companies Act or the Regulations. This section will however briefly deal with the main principles of the duties of directors and managers as set out in the Act and the Regulations, including the liability, including personal liability, of directors, managers and the Board. The Companies Act and the regulations came into operation on 1 May 2011. In order to deal with and to discuss the topic above, reference will also be made the King 3 report and the broad principles of ethics and corporate governance in a business. A broad understanding of these principles is needed to also fully grasp the effect and underlying principles of the Act and the Regulations in this regard. Good corporate governance is essential for any business in South Africa, no matter how big or small. Even the small family business needs to protect itself against bad management, bad ethics and dishonest and criminal behaviour, by the owners, board, managers and employees alike. In an ever growing business society the treat and temptation of dishonest and criminal activities and business deals are ever growing and often companies may ask; do ethics pay?