There are a number of Statutory Rights that hold directors liable for non-compliance. These can be found on the following list:
•The Trust Property Control Act No 57 of 1988
•The Financial Institutions Act No 31 of 1984
• The Income Tax Act No 58 of 1962
•The Pensions Funds Act No 24 of 1956
• The Banks Act No 94 of 1990
• The Insolvency Act No 24 of 1936
These rights held protect a company and its stakeholders if a director refuses to comply with them in a professional manner. It also helps protect their investments and ensures that any important decisions to be made need to be taken as a group and not by a single individual.
Having a set of rules and regulations in place within an organization helps operations run more smoothly. It helps prevent tensions and ensures that all interested parties such as the stakeholders, director and senior management are aware of what is going on within the company at any given time.
By having statutory rules in place, a director can be held liable if he or she deliberately tries to upset this balance by not considering what is best for the company. If will also hold them liable if they are later found to have made investments or business deals for example without having made the stakeholders aware of it prior to making a deal. It therefore means that if a deal does then fall through, it will be the director who is financially liable for it and they must then pay back any losses to the company.
Rules like this help protect the company’s assets, its capital and the rights of the employees. When a lot of capital investment is at risk it is always very beneficial to know that the director will always legally have to answer to the board for any decisions he or she made without their knowledge.
•The Trust Property Control Act No 57 of 1988
•The Financial Institutions Act No 31 of 1984
• The Income Tax Act No 58 of 1962
•The Pensions Funds Act No 24 of 1956
• The Banks Act No 94 of 1990
• The Insolvency Act No 24 of 1936
These rights held protect a company and its stakeholders if a director refuses to comply with them in a professional manner. It also helps protect their investments and ensures that any important decisions to be made need to be taken as a group and not by a single individual.
Having a set of rules and regulations in place within an organization helps operations run more smoothly. It helps prevent tensions and ensures that all interested parties such as the stakeholders, director and senior management are aware of what is going on within the company at any given time.
By having statutory rules in place, a director can be held liable if he or she deliberately tries to upset this balance by not considering what is best for the company. If will also hold them liable if they are later found to have made investments or business deals for example without having made the stakeholders aware of it prior to making a deal. It therefore means that if a deal does then fall through, it will be the director who is financially liable for it and they must then pay back any losses to the company.
Rules like this help protect the company’s assets, its capital and the rights of the employees. When a lot of capital investment is at risk it is always very beneficial to know that the director will always legally have to answer to the board for any decisions he or she made without their knowledge.
