A Critical and Comparative Analysis of the Regulation of the Office of the Chairman in Contemporary South African Companies

Authors

DOI:

https://doi.org/10.25159/2522-3062/13859

Keywords:

Chairman of companies, contemporary community expectations, appointment of chairman, tenure of chairman, functions and liabilities of chairman, fiduciary duties, duty of care skill and diligence

Abstract

The role of chairman of the board of directors of a contemporary company has evolved from procedural and ceremonial to complex and demanding. This article examines the appointment, tenure, functions, and liabilities of this position, as regulated by the Companies Act 71 of 2008, the JSE Limited Listings Requirements, and the King IV Report on Corporate Governance for South Africa 2016. The aim is to ascertain whether the guidance provided to chairmen on their appointment, tenure, functions, and liabilities is clear and adequate to guide them on what is expected of them in contemporary companies. Company law in the United Kingdom and Australia is compared because this area of law has been extensively developed in these jurisdictions and may offer guidance on the regulation of the office of the chairman of South African companies. The article contends that the guidance provided to a chairman by South African legal instruments is neither clear nor adequate. It identifies several shortcomings in the regulation of the chairman and makes recommendations to enhance the South African statutory and corporate governance provisions regulating the chairman.

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Author Biography

Rehana Cassim, University of South Africa

BA (cum laude) LLB (cum laude) LLM (cum laude) (Witwatersrand) LLD (Unisa)

Professor, Department of Mercantile Law, College of Law, University of South Africa

Attorney and Notary Public of the High Court of South Africa

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Legislation, Codes, Guides, Recommendations, and Listing Requirements

Australia

Corporations Act 2001 (Cth).

ASX Corporate Governance Council Corporate Governance Principles and Recommendations (4 edn, February 2019).

South Africa

Companies Act 61 of 1973.

Companies Act 71 of 2008.

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United Kingdom

Companies (Model Articles) Regulations 2008 (SI 2008/3229).

Companies Act 2006 (c. 46).

Financial Reporting Council The UK Corporate Governance Code (July 2018).

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Published

2024-03-28

How to Cite

Cassim, Rehana. “A Critical and Comparative Analysis of the Regulation of the Office of the Chairman in Contemporary South African Companies”. Comparative and International Law Journal of Southern Africa, 27 pages. https://doi.org/10.25159/2522-3062/13859.

Issue

Section

Articles
Received 2023-06-12
Accepted 2024-02-02
Published 2024-03-28