Disqualification as a Director

company-law

The most important and common parts relating to disqualification is listed below, as set out in section 69 of the companies act.

(8) A person is disqualified to be a director of a company if—
(a) a court has prohibited that person to be a director, or declared the person to be
delinquent in terms of section 162, or in terms of section 47 of the Close
Corporations Act, 1984 (Act No. 69 of 1984); or
(b) subject to subsections (9) to (12), the person—
(i) is an unrehabilitated insolvent;
(ii) is prohibited in terms of any public regulation to be a director of the
company;
(iii) has been removed from an office of trust, on the grounds of misconduct
involving dishonesty; or
(iv) has been convicted, in the Republic or elsewhere, and imprisoned
without the option of a fine, or fined more than the prescribed amount, for
theft, fraud, forgery, perjury or an offence—
(aa) involving fraud, misrepresentation or dishonesty;
(bb) in connection with the promotion, formation or management of a
company, or in connection with any act contemplated in subsection
(2) or (5); or
(cc) under this Act, the Insolvency Act, 1936 (Act No. 24 of 1936), the
Close Corporations Act, 1984, the Competition Act, the Financial
Intelligence Centre Act, 2001 (Act No. 38 of 2001), the Securities
Services Act, 2004 (Act No. 36 of 2004), or Chapter 2 of the
Prevention and Combating of Corruption Activities Act, 2004 (Act
No. 12 of 2004).
(9) A disqualification in terms of subsection (8)
(b)(iii) or (iv) ends at the later of—
(a) five years after the date of removal from office, or the completion of the
sentence imposed for the relevant offence, as the case may be; or
(b) at the end of one or more extensions, as determined by a court from time to
time, on application by the Commission in terms of subsection (10)