ABSTRACT

This chapter focuses on automatic disqualification as well as disqualifications by a court order, in some jurisdictions instigated by the primary corporate regulator. An overview of the statutory provisions contained in former Companies Acts is given to illustrate the overlap and difference between former and current statutory provisions addressing director disqualification. The chapter also analyses two court cases addressing relevant sections of the Companies Act 2008 (SA) (2008 Act) to illustrate the differences between automatic disqualification and disqualification on application. The introduction of the 2008 Act constituted a major overhaul of South African company law aimed at promoting corporate transparency and accountability and improved corporate governance in the South African corporate sector. Section 69, which addresses automatic disqualification, improved the directors' disqualification provisions in that it clarified the application of the section and addressed problematic aspects of section 218 in the 1973 Act.