Zondo gets his wish: more time to chase bad directors

The Companies Amendment Act extends the time to hold directors accountable for delinquency from 24 to 60 months, or even more with good cause. The question is whether five years is enough.

- Ina Opperman

Professor Parmi Natesan, CEO of the Institute of Directors in South Africa, says it is a definite move in the right direction, but questions whether it is enough.

The amendment is a direct result of the Commission of Inquiry into State Capture's finding that directors of captured stateowned entities (SOEs) were not held accountable.

Chief Justice Raymond Zondo chaired the inquiry.

It called for an amendment of the Companies Act to extend the period wherein an application for an order declaring someone delinquent can be brought, as it can take years for the facts of delinquency to be uncovered.

The Act amends the Companies Act of 2008, to extend the 24-month time to launch proceedings to 60 months and gives the court the power to extend this period further.