Streaming issues? Report here
Just the Hits generic CapeTalk Just the Hits generic CapeTalk
Just the Hits
10:00 - 11:00
volume_up
volume_mute

Up Next: Just the Hits with Abongile Nzelenzele
See full line-up
Just the Hits
10:00 - 11:00
Home
arrow_forward
Business
fiber_manual_record
Opinion

Gross misconduct. Dishonesty. Recklessness - what 'delinquent director' means

2 June 2020 9:15 AM
Tags:
South African Airways
SAA
Dudu Myeni
OUTA
Pretoria High Court
Director
Refilwe Moloto
management
Breakfast with Refilwe Moloto
Delinquency case against Dudu Myeni
Fay Mukaddam
fiduciary duties
fiduciary duty
directorship
oversight

Only very serious wrongdoing will get one declared a “delinquent director for life”, says Advocate Fay Mukaddam.

Dudu Myeni is a “delinquent director for life”, ruled the Pretoria High Court last week.

Dudu Myeni. Picture: The Presidency/Flickr

The former South African Airways (SAA) Chairperson acted recklessly and broke her fiduciary duty, the High Court found, saying that the people of South Africa and SAA's employees are paying the price for her actions.

Judge Ronel Tolmay called Myeni “a director gone rogue without the slightest consideration for her fiduciary duty to SAA”.

Ms Myeni is not a fit and proper person to be appointed as a director of any company, let alone an SOE, she said.

The law requires directors to act in good faith and in the best interest of the company they serve.

The “fiduciary duties” of directors in South Africa include:

  • The duty of care – to act with a certain level of skill, competence and diligence.

  • The duty of loyalty - to act honestly and in good faith, and in the best interests of the organisation.

Refilwe Moloto asked Advocate Fay Mukaddam (Chartered Director and Technical Advisor at the IoDSA) to help her better understand the fiduciary duty of directors.

A delinquent director is somebody who has been found wanting because of gross misconduct where you have acted dishonestly, with gross negligence and recklessly in terms of your fiduciary duty. Not acting in the entity’s best interest or taking the necessary care and skill in looking after the interest of all those in the ecosystem of the entity.

Advocate Fay Mukaddam, Chartered Director - IoDSA

If you have an oversight or error of judgment or misdemeanour – that doesn’t qualify… [Being found to be a delinquent director] talks to serious misconduct… Gross negligence and an attitude of reckless disregard of the consequences… completely without concern… while being fully aware of the harm to the company and stakeholders.

Advocate Fay Mukaddam, Chartered Director - IoDSA

The board has an oversight role… but it’s not a management role. There must be a separation and clear delineation in terms of the roles and responsibilities…

Advocate Fay Mukaddam, Chartered Director - IoDSA

I cringe when people say they’re a professional director… You have to avoid conflicts of interest and not act for your own gain… The board has to take note of how their decisions will impact on all the stakeholders…

Advocate Fay Mukaddam, Chartered Director - IoDSA

Listen to the interview in the audio below.


2 June 2020 9:15 AM
Tags:
South African Airways
SAA
Dudu Myeni
OUTA
Pretoria High Court
Director
Refilwe Moloto
management
Breakfast with Refilwe Moloto
Delinquency case against Dudu Myeni
Fay Mukaddam
fiduciary duties
fiduciary duty
directorship
oversight

Recommended

More from Business

hotel-room-bed-accommodation-tourism-travel-vacation-leisure-break-sleep-123rf

Whoops! Presidency backtracks on info stating that leisure travel is allowed

11 July 2020 1:10 PM

The Presidency has now deleted an infographic on social media suggesting that leisure travel is allowed under level 3 regulations.

Share this:
Read More arrow_forward

Light bulb, electricity, load shedding.

Load shedding a big blow to local businesses trying to recover from lockdown

11 July 2020 12:23 PM

Eskom announced the return of load shedding on Friday due to reduced generating capacity and increased pressure on the grid.

Share this:
Read More arrow_forward

Food security hunger feeding 123rf 123rfbusiness 123rflifestyle

South Africa is an emerging epicentre of hunger – Oxfam

10 July 2020 3:39 PM

More people are likely to die from Covid-19-related hunger than the disease itself, warns Oxfam in its “Hunger Virus” report.

Share this:
Read More arrow_forward

wifi-internet-data-broadband-cell-phone-mobile-device-network-providers-123rf

Small Business Focus: How to get your marketing right in a shrinking media world

9 July 2020 8:38 PM

Pavlo Phitidis says focus must be on the customer group you are trying to reach. You've got to get your demographics right.

Share this:
Read More arrow_forward

broken-heart-broke-money-coins-finances-love-relationship-divorce-break-up-123rf

Personal Finance Feature: Julia - The super saver

9 July 2020 8:02 PM

Though leaving corporate to venture into tourism has been a big test of resilience, she is still happy with her decision.

Share this:
Read More arrow_forward

180710sactwu-strikejpg

SA is becoming a country of old people. Median age has risen from 23 to 27

9 July 2020 7:30 PM

Lumkile Mondi says skills and knowledge that have driven a lot of the growth in the past are going to be undermined.

Share this:
Read More arrow_forward

Woman saving money piggy bank mask 123rf 123rfbusiness 123rflifestyle

Supersaver Julia has changed lives, and she can change yours! – Bruce Whitfield

9 July 2020 3:00 PM

Need the inspiration to save? The Money Show’s Bruce Whitfield interviews “Supersaver Julia” at around 7:15 pm tonight.

Share this:
Read More arrow_forward

candle-dark-electricityjpg

Eskom heaps more misery on SA as load shedding returns. Because the cold front

9 July 2020 9:30 AM

"The generation system is constrained due to the cold front. Expect load shedding," warns Eskom's Sikonathi Mantshantsha.

Share this:
Read More arrow_forward

200106-daniel-mminele-edjpg

Daniel Mminele on his shapeshifting career

8 July 2020 8:43 PM

Absa CEO Daniel Mminele says they had to transition very quickly within a very space of time into operating in a new normal.

Share this:
Read More arrow_forward

171227prieska-arrestjpg

Payment methods ... the good, the bad and the ugly

8 July 2020 8:14 PM

Wendy Knowler says it is expensive to issue or bank a cheque. For example, to deposit a cheque can cost well over R100.

Share this:
Read More arrow_forward

More from Opinion

Food security hunger feeding 123rf 123rfbusiness 123rflifestyle

South Africa is an emerging epicentre of hunger – Oxfam

10 July 2020 3:39 PM

More people are likely to die from Covid-19-related hunger than the disease itself, warns Oxfam in its “Hunger Virus” report.

Share this:
Read More arrow_forward

Lungi Ngidi

'People like Pat Symcox are completely oblivious to issues of structural racism'

10 July 2020 1:48 PM

"Was I surprised by Graeme Smith’s lukewarm response? Probably not," says freelance journalist Niren Tolsi.

Share this:
Read More arrow_forward

Cape Town CBD during lockdown Step Above

Weekday traffic in Cape Town still way below pre-lockdown levels

8 July 2020 3:03 PM

Traffic volumes on the N1, N2, N7 and M5 freeways were only at about 65% of normal levels by the end of June.

Share this:
Read More arrow_forward

black-family-house-for-sale-sold-property-household-investment-bond-rent-123rf

'Demand for property below R3 million is starting to recover'

8 July 2020 1:35 PM

For some properties – with interest rates at half-a-century lows – it’s becoming cheaper to buy than to rent.

Share this:
Read More arrow_forward

180831-old-mutual-edjpg

Old Mutual's hackneyed new TV ad looks like Allan Gray in green – Andy Rice

7 July 2020 7:38 PM

Ouch! The Money Show's Bruce Whitfield asks Andy Rice why he gives Old Mutual’s new television commercial a “zero”.

Share this:
Read More arrow_forward

Clover blue man

Clover’s trippy blue bottle ad campaign – so bad (and bizarre) it’s good

7 July 2020 7:30 PM

People will be talking about it ‘till they’re blue in the face. The Money Show's Bruce Whitfield interviews ad expert Andy Rice.

Share this:
Read More arrow_forward

Covid-19 insurance 123rf 123rfbusiness 123rflifestyle 123rfpersonalfinance

Shareholder activists grill Santam about 'business interruption insurance'

7 July 2020 6:47 PM

The lockdown did it – not the pandemic – so we can’t pay, argues Santam. Bruce Whitfield interviews Tracey Davies of Just Share.

Share this:
Read More arrow_forward

Aisha Pandor SweepSouth Alen Ribic

Job won’t make you rich. You must earn in your sleep - Aisha Pandor, SweepSouth

6 July 2020 8:39 PM

Bruce Whitfield talks to SweepSouth cofounder Aisha Pandor about her attitude to money (hopes and fears, successes and failures).

Share this:
Read More arrow_forward

Frog in a pot

Are we boiling frogs? And why do SUV drivers look so confused, asks Tom Eaton

6 July 2020 8:18 PM

The Money Show’s Bruce Whitfield interviews columnist Tom Eaton about his new book, "Is it me, or is it getting hot in here?"

Share this:
Read More arrow_forward

200406-lockdowngif

101 days of lockdown: What we gained (and lost), and what we have learned

6 July 2020 8:07 PM

The Money Show’s Bruce Whitfield interviews Kevin Lings, Chief Economist at Stanlib Asset Management.

Share this:
Read More arrow_forward