A “safe harbour” for directors in South Africa? : a comparative study of the Business judgment rule

Abstract

Section 76(4) of the Companies Act 71, 2008 has introduced into South African company law a provision which one may regard as providing a “safe harbour” for directors against a breach of their fiduciary duty to act in the best interest of the company and their duty of care, skill, and diligence. Should directors in South Africa meet the requirements of the business judgment rule, they will be safe from incurring any personal liability. The Companies Act, 2008 has also partially codified directors’ duties in section 76(3). It is shown that the South African business judgment rule applies only to directors’ codified fiduciary duty to act in the best interest of the company and their duty of care, skill, and diligence. The main aim of this study is to make recommendations in an attempt to improve/refine the formulation of the current section 76(4) of the Companies Act, 2008. These recommendations are based on the comparisons drawn between the jurisdictions examined (US, UK and Australia). I selected these jurisdictions for the comparative survey for specific reasons in order to recommend an improved and more effective version of section 76(4). Although the UK does not include a statutory business judgment rule in its Companies Act, the consideration of this jurisdiction is relevant for two reasons. First, to enrich the discussion by ascertaining why the country opted not to include the rule in its Companies Act, 2006. But also, the company law of the other jurisdictions discussed, including South Africa, were based on English law so it remains relevant for purposes of comparing the significance and application of the business judgment rule in the different jurisdictions.

Artikel 76(4) van die Maatskappywet 71, 2008 het in die Suid-Afrikaanse maatskappywet 'n bepaling ingestel wat 'n mens kan beskou as die verskaffing van 'n “veilige hawe” vir direkteure teen 'n oortreding van hul fidusiêre plig om in die beste belang van die maatskappy en hul plig van sorg, vaardigheid en ywer op te tree. Sou direkteure in Suid-Afrika aan die vereistes van die sake-oordeelreël voldoen, sal hulle beskerming geniet teen enige persoonlike aanspreeklikheid. Die Maatskappywet, 2008 het ook direkteure se pligte gedeeltelik gekodifiseer in artikel 76(3). Daar word getoon dat die Suid-Afrikaanse sake-oordeel reël slegs van toepassing is op direkteure se gekodifiseerde fidusiêre plig om in die beste belang van die maatskappy op te tree en op hul plig van sorg, vaardigheid en ywer. Die hoofdoel van hierdie studie is om aanbevelings te maak in 'n poging om die formulering van die huidige artikel 76(4) van die Maatskappywet, 2008, te verbeter/te verfyn. Hierdie aanbevelings is gebaseer op die vergelykings getrek tussen die jurisdiksies ondersoek (VSA, die Verenigde Koninkryk en Australië). Ek het hierdie jurisdiksies om spesifieke redes gekies vir die regsvergelykende studie om 'n verbeterde en meer effektiewe weergawe van artikel 76(4) aan te beveel. Alhoewel die Verenigde Koninkryk se Maaatskappywet nie 'n statutêre sake-oordeelsreël insluit nie, is die oorweging van daardie jurisdiksie om twee redes relevant. Eerstens om die bespreking te verryk deur vas te stel waarom die reël nie in die Maatskappywet, 2006, ingesluit is nie. Maar ook bly die jurisdiksie relevant vir doeleindes van die vergelyking en toepassing van die sake- oordeelsreël in die ander jurisdiksies, insluitend Suid-Afrika, omdat hul maatskappyereg aanvanklik op die Engelse reg gebaseer was.

Karolo ea 76 (4) ea Molao oa Likhamphani 71, 2008 e kentse molao oa khamphani oa Afrika Boroa tokisetso e fanang ka “kamohelo e sireletsehileng” bakeng sa batsamaisi khahlanong le tlolo ea mosebetsi oa bona oa botsitso ho sebetsa molemong oa k’hamphani le mosebetsi oa bona tlhokomelo, boiphihlelo, le mafolofolo. Ha batsamaisi Afrika Boroa ba ka fihlela litlhoko tsa molaoana oa kahlolo ea khoebo, ba tla bolokeha hore ba se ke ba itlama ka molato. Molao oa Likhamphani, 2008 o boetse o na le likarolo tse 'maloa tsa batsamaisi ba likarolo tse ka Karolong ea 76 (3). Ho bonts'oa hore kahlolo ea khoebo ea khoebo ea Afrika Boroa e sebetsa feela ho batsamaisi mosebetsi o felletsoeng oa ho etsa lintho molemong oa k'hamphani le boikarabello ba bona ba tlhokomelo, boiphihlelo le mahlahahlaha. Mesebetsi ena e e lekola khaolong e sebetsanang le Afrika Boroa bakeng sa phetheho. Sepheo sa mantlha sa thuto ena ke ho etsa litlhahiso molemong oa ho ntlafatsa le ho ntlafatsa sebopeho sa karolo ea 76 (4) ea Molao oa Likhamphani, 2008. Litlhahiso tsena li ipapisitse le papiso e bapisoang pakeng tsa matla a molao a hlahlojoang (US, UK. le Australia). Ke ile ka leka ho nka meeli e meng ho latela khetho le tlhahlobo ka hloko ho khothaletsa mofuta oa ntlafatso oa karolo ea 76 (4). Le ha UK e ne e sa kenyeletse molao oa kahlolo ea khoebo e amanang le molao o bohlokoa moqoqong ona hore na ke hobaneng ha UK e khethileng ho se kenye molao ho Molao oa Likhamphani, 2006 le ho bapisa bohlokoa ba molao oa kahlolo ea khoebo ka ho fapaneng melao.