Your company director could find herself behind bars if she doesn't adhere to her duties set out in the Companies Act.
That's right. Failure to comply means your director could get a fine of up to R1 million or get thrown in jail for 10 years.
Is your director aware of her three duties?
Director duty #1: A director must act in good faith and for proper purpose, says the Practical Accountancy Loose Leaf.
Your director mustn't cheat your company or enter into a transaction with a hidden agenda. She must always act in your company's best interests.
Director duty#2: A director must display independent judgement in decision-making.
A company appoints someone as a director because she has a skill set to benefit the company. So ensure your director uses her own skills and judgement to make decisions. And that other people don't influence her decisions or dictate how she should act or vote.
Director duty#3: Your company director must communicate any relevant information to the board as soon as possible. Unless:
It's that simple. Ensure your director adheres to these duties to avoid a hefty fine or jail time.