The duty of care, skill and diligence: the King Report and the 2008 Companies Act

Delport, P. and Esser, I.-M. (2011) The duty of care, skill and diligence: the King Report and the 2008 Companies Act. Journal of Contemporary Roman Dutch Law, 74, p. 449.

Full text not currently available from Enlighten.

Abstract

Corporate governance is a broad concept and includes not only the common-law and statutory duties of directors, but also refers to the codes of practice of various (usually extra judiciary) entities The difference between these two meanings is that the former includes possible liability under the law for non-compliance, while the latter implies what it says, namely, it is a recommendation and non-compliance will result in “sanctions” other than direct liability. In a recent South African case the court referred to principles of good governance and it would appear that these principles (which are not contained in legislation or which are not mere restatements of common law principles) are not always mere recommendations. Instead, directors may have to adhere to these recommendations to prevent liability for breaching their legal duties.

Item Type:Articles
Status:Published
Refereed:Yes
Glasgow Author(s) Enlighten ID:Esser, Professor Irene-Marie
Authors: Delport, P., and Esser, I.-M.
College/School:College of Social Sciences > School of Law
Journal Name:Journal of Contemporary Roman Dutch Law
Publisher:LexisNexis

University Staff: Request a correction | Enlighten Editors: Update this record