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About: Delinquent Director     Goto   Sponge   NotDistinct   Permalink

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Section 162 of the South African Companies Act 71 of 2008 allows shareholders and other stakeholders to apply to the court to declare a director of a company delinquent. If found guilty of serious misconduct, gross abuse of position, gross negligence, wilful misconduct or a breach of trust, a director can be declared delinquent by the court. If declared delinquent an order will ban a person from holding a director position for at least 7 years, for life in serious cases.