ABSTRACT

A Practical Explanation of Ethical Director Appointments: Case Law Examples from South Africa and Australia

Author: Neels KILIAN

Type: Article : News

ref: 52021735-743

N0:5 of 2021

Pages: 735-743

The appointment of directors in South Africa and Australia are regulated by the Companies Act 2008 and Corporations Act 2001. Both pieces of legislation define a director as someone who occupies the position of a director. In South Africa, additional written acceptance to occupy such a position is required. Besides the latter regulations, good corporate governance principles are relevant to both countries. In South Africa the King Code defines ethical company (irrespective the type of company) behaviour and in Australia different rules or codes apply to different types of companies. For example, friendly societies are regulated by the Prudential Regulatory Authority (APRA) and listed companies by the Australian Securities and Investments Commission (ASIC). In this article we focus only on ASIC which may be applied voluntary to both listed and unlisted companies. In this article, director appointments of both countries are compared to understand when director appointments are ethical or not.