Confusion in the Removal of Directors by Shareholders under the Companies Act 71 of 2008: Miller v Natmed Defence (Pty) Ltd
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Authors
Cassim, Rehana
Issue Date
2022
Type
Article
Language
en
Keywords
Removal of directors , Shareholder removal , Reasons for removal , Notice period of meetings , Telephonic meetings , Damages for loss of office , Section 71 of the Companies Act 71 of 2008
Alternative Title
Abstract
This note critically analyses the judgment in Miller v Natmed Defence (Pty) Ltd
2022 (2) SA 554 (GJ), in which the court ruled on the validity of the removal of a
director by the company’s sole shareholder. Three issues were in contention: whether
a shareholder must furnish the director with reasons for the proposed resolution to
remove a director from office under s 71 of the Companies Act 71 of 2008; whether a
shorter notice period for the shareholders’ meeting was legally acceptable; and whether
the meeting that was held telephonically was valid. The court ruled that the director’s
removal from office was valid and dismissed his request to be reinstated as a director.
This note critically analyses the judgment and argues that the court misinterpreted
some aspects of s 71 of the Act.
Description
Citation
Cassim, R. (2022). CONFUSION IN THE REMOVAL OF DIRECTORS BY SHAREHOLDERS UNDER THE COMPANIES ACT 71 OF 2008: MILLER v NATMED DEFENCE (PTY) LTD. Vol. 139 (4). p. 741-756
Publisher
South African Law Journal
License
Journal
Volume
Issue
PubMed ID
DOI
ISSN
0258-2503