Abstract:
Examines the tasks of company directors, which are to determine the company's policy, to exercise control and to enter into contracts on behalf of the company. The law is found to impose extensive duties on directors, from the common law as well as the Companies Act. The penalties for the failure to comply with such responsibilities have recently become more serious. The duty of skill and diligence in the exercise of their duties by directors is based on the standard of care that can be expected of a reasonable man having the knowledge and experience of the director in question. A survey of directors of private companies and public accountants and auditors in the Cape Peninsula was carried out to determine the extent to which directors of private companies are aware of their duties. The results indicate that a great majority of private company directors are not reasonably acquainted with their duties. There is a pressing need for the awareness of legal duties by company directors. A seminar on directors' duties, to be offered by an educational institute on a regular basis, is recommended.
