Andile

CORPORATE GOVERNANCE AND PERSONAL LIABILITY IN TERMS OF SECTION

424(1) OF THE COMPANIES ACT OR SECTION 64(1) OF THE CLOSE

CORPORATIONS ACT

Johann Basson'

Abstract

The author poses the question: "In knowingly becoming a party to the conducting of corporate

business, within which boundaries must I operate so as not to become personally liable for all or

any of such debts or other liabilities of the corporation as the Court may direct in terms of section

424(1) of the Companies Act 61 of 1973 or section 64(1) of the Close Corporations Act 69 of

1984?"

The answer to this question may prove to be of paramount importance to members of the scientific

and engineering fraternity who become involved in corporate governance, whether in a technology

advisory capacity, in a managerial capacity, or otherwise.

Opsomming

Die outeur stel die volgende vraag: "Indien ek wetens as 'n party betrokke raak by die bedryfvan 'n

maatskappy, binne welke grense moet ek optree om persoonlike aanspreeklikheid te vermy vir al of

enige van die skulde of ander verpligtinge van die maatskappy soos die Hof mag gelas ingevolge

artikel 424(1) van die Maatskappywet , No. 61 van 1973 of artikel 64(1) van die Wet op Beslote

Korporasies, No. 69 van 1984?"

Die antwoord op hierdie vraag mag van groot belang wees vir lede van die wetenskap- en

ingenieursberoepe wat op die een of ander manier betrokke raak by die bedryf van ' n maatskappy,

hetsy in 'n tegnologie-adviserende hoedanigheid, in ' n bestuurshoedanigheid ofandersins.

, LL.M., M.Sc. (Physics), Pr.ScLNat Affiliation: CSIR, POBox 395, Pretoria.

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Introduction

Many members of the scientific and engineering fraternity become involved in corporate

governance, whether in a technology advisory capacity, in moving up the managerial ladder, or by

other means. Members may serve on a company's board of directors as an "executive" or "nonexecutive" director. Some may start up their own company or Close Corporation and...