A delinquent director is a term used under Section 162 of the South African Companies Act 71 of 2008, which allows shareholders and other stakeholders to apply to the court to declare a director of a company delinquent.[citation needed]
If found guilty of serious misconduct, gross abuse of position, gross negligence, wilful misconduct or a breach of trust, a director can be declared delinquent by the court. If declared delinquent, an order will ban a person from holding a director position for at least seven years, or for life in serious cases.[citation needed]
The delinquency order provides a way to ensure that directors remain accountable to the company, shareholders, fellow directors and employees. It sets out to raise standards of good behaviour expected of directors, and protects the public from incompetent and dishonest directors.[1][2][3][4][5][6]
^Cassim, Rehana (2016). "Delinquent directors under the Companies Act 71 of 2008: Gihwala v Grancy Property Limited 2016 ZASCA 35". Potchefstroom Electronic Law Journal/Potchefstroomse Elektroniese Regsblad. 19 (1): 1. doi:10.17159/1727-3781/2016/v19i0a1246.
^"How to get rid of a delinquent director in your business". theartmey.co.za. Retrieved 5 June 2020.
^"Why South African law on directors' delinquency is open to abuse". mg.co.za. Retrieved 5 June 2020.
^"Delinquent directors and the shareholder – Director conundrum". golegal.co.za. Retrieved 5 June 2020.
^"Court may declare a director delinquent". saica.co.za. Retrieved 5 June 2020.
^"The Delinquent Director". greeffattorneys.co.za. Retrieved 5 June 2020.
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