Director's Co-liability for delicts
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Authors
Havenga, Michele
Issue Date
2006
Type
Article
Language
en
Keywords
Legal entity , Shareholders and Directors , liability personally
Alternative Title
Abstract
It is an established principle of company law that a company is a separate
legal entity and that as a general rule, incorporation confers the benefi t of
limited liability on its shareholders and directors (see Salomon v A Salomon
& Company Ltd [1897] AC 22 (HL)). This principle, together with the
‘identifi cation’ or ‘alter ego’ theory, which ascribes the directing mind and will
of the person acting on behalf of the company to the company itself (see, eg,
Lennard’s Carrying Company Ltd v Asiatic Petroleum Company Ltd [1915] AC
705 (HL) at 713; HL Bolton (Engineering) Co Ltd v TJ Graham and Sons Ltd
[1957] 1 QB 159 (CA); Tesco Supermarkets Ltd v Nattrass [1972] AC 153 (HL);
Meridian Global Funds Management Asia Ltd v Securities Commission [1995]
2 AC 500 (PC)), lead to the sometimes problematic conclusion that a person
acting on behalf of a company will, in principle, not incur liability personally
and that a prejudiced third party must look to the company for recourse (for
further authorities on the point, see Louis de Koker ‘Die Aanspreeklikheid van
Direkteure vir Delikte Gepleeg in Ampsverband’ 2002 Tydskrif vir die SuidAfrikaanse Reg 18 at 20 et seq
Description
Citation
Havenga, Michele (2006) Director's Co-liability for delicts. South African Mercentile Law Journal 18(10)
Publisher
Juta Law
License
Journal
Volume
Issue
PubMed ID
DOI
ISSN
10150099