“Any director, manager or supervisor in a business can be brought to task over the decisions that they make and they are most probably not even aware of this fact.”
The business environment in South Africa has been going through some small changes with dramatic effects. Professionals in business today are gravitating toward a culture where the best teams function as a collective entity and, depending on the project, we see various strong leaders in an executive team standing out. We are thus surrounding ourselves with empowered professionals who are working just as hard to build a business that is bigger than the sum of its parts.
It is thus very surprising that so many empowered professional choose to remain ignorant to the rules of corporate governance. Unfortunately the time has passed where ignorance is a valid excuse, as the law now transfers responsibility to company members on all levels of the organization.
The new companies act has made it clear that any person in a company that holds influence over stakeholders by the decisions they make will become liable for those decisions. Every person that fits this bill is now referred to as a Prescribed Officer and faces the same consequences as a company director.. This means that any director, manager or supervisor in a business can be brought to task over the decisions that they make and they are most probably not even aware of this fact
As business owners it is our responsibility to ensure that our team is aware of the risks they face when making decisions that can impact on others in and around the business.
We would like to help you empower the people in your company to become informed Prescribed Officers and we might even teach you a thing or two.
CST runs a Director/Prescribed Officer training program that covers all the information you need to know and informs you of the risks associated with the new companies Act.
Some of what you will learn:
- What is the new laws all about
- Your duties and liabilities as a company Director / Prescribed Officer
- Ways in which Prescribed Officers can be held liable
- The rights of shareholders and conflict of interest
- “Solvency & liquidity” and when to apply these principles
- What “Public interest score” is all about
- How to change your company Articles to a new MOI
Refer to our website www.cstgovernance .com for more information or contact us :
- 011 4755 393