{{short description|Legal reason to depose a director of a company}} {{Use South African English|date=June 2020}} {{Use dmy dates|date=June 2020}} A '''delinquent director''' is a term used under Section 162 of the South African Companies Act 71 of 2008, which allows shareholders and other stakeholders to apply to the court to declare a director of a company delinquent.<ref>{{cite web |title=OUTA takes on delinquent directors at SOEs |url=https://www.outa.co.za/projects/special-projects/delinquent-directors |website=Organisation Undoing Tax Abuse OUTA |publisher=OUTA |access-date=28 November 2025}}</ref>
If found guilty of serious misconduct, gross abuse of position, gross negligence, wilful misconduct or a breach of trust, a director can be declared delinquent by the court. If declared delinquent, an order will ban a person from holding a director position for at least seven years, or for life in serious cases.<ref>{{cite web |last1=Rehana |first1=Cassim |title=Delinquent directors under the Companies Act 71 of 2008 |url=https://www.saflii.org/za/journals/DEREBUS/2013/14.html |website=Southern African Legal Information Institute SAFLII |publisher=Southern African Legal Information Institute |access-date=28 November 2025}}</ref>
The delinquency order provides a way to ensure that directors remain accountable to the company, shareholders, fellow directors and employees. It sets out to raise standards of good behaviour expected of directors, and protects the public from incompetent and dishonest directors.<ref>{{cite journal |last1=Cassim |first1=Rehana |title=Delinquent directors under the Companies Act 71 of 2008: Gihwala v Grancy Property Limited 2016 ZASCA 35 |journal=Potchefstroom Electronic Law Journal/Potchefstroomse Elektroniese Regsblad |date=2016 |volume=19 |issue=1 |page=1 |doi=10.17159/1727-3781/2016/v19i0a1246 |doi-access=free }}</ref><ref>{{Cite web |url=https://www.theartmey.co.za/NewsResources/NewsArticle.aspx?ArticleID=2950 |title=How to get rid of a delinquent director in your business |website=theartmey.co.za |language=en-ZA|access-date=2020-06-05}}</ref><ref>{{Cite web |url=https://mg.co.za/article/2019-09-02-00-why-south-african-law-on-directors-delinquency-is-open-to-abuse/ |title=Why South African law on directors' delinquency is open to abuse |website=mg.co.za |language=en-ZA|access-date=2020-06-05}}</ref><ref>{{Cite web |url=https://www.golegal.co.za/delinquent-directors-shareholders/ |title=Delinquent directors and the shareholder – Director conundrum |website=golegal.co.za |language=en-ZA|access-date=2020-06-05}}</ref><ref>{{Cite web |url=https://www.saica.co.za/integritax/2014/2338._Court_may_declare_a_director_delinquent.htm |title=Court may declare a director delinquent |website=saica.co.za |language=en-ZA|access-date=2020-06-05}}</ref><ref>{{Cite web |url=https://greeffattorneys.co.za/2018/07/04/the-delinquent-director/ |title=The Delinquent Director |website=greeffattorneys.co.za |language=en-ZA|access-date=2020-06-05}}</ref>
==Notable cases== An example of a person declared a delinquent director in South Africa is Dudu Myeni, the former chairperson of SAA.<ref>{{Cite web|url=https://mg.co.za/business/2020-05-27-high-court-declares-dudu-myeni-delinquent/|title=High court declares Dudu Myeni delinquent|website=mg.co.za|language=en-ZA|access-date=2020-05-28}}</ref><ref name="CDH">{{cite web |last1=Meyer |first1=Jaco |last2=Kelly |first2=Rachel|title=Delinquent Directors |url=https://www.cliffedekkerhofmeyr.com/en/news/publications/2020/corporate/corporate-and-commercial-alert-4-june-Delinquent-Directors-.html |website=www.cliffedekkerhofmeyr.com |publisher=Cliffe Dekker Hofmeyr |access-date=30 June 2021 |date=4 June 2020}}</ref> Myeni was judged by a court to have "acted dishonestly and grossly abused her powers" and "exposed SAA to financial ruin".<ref name="CDH" /><ref>{{cite news |title=Seven things you need to know about Dudu Myeni – including how silence could land her in jail |url=https://www.businessinsider.co.za/dudu-myeni-what-you-need-to-know-2020-11 |access-date=30 June 2021 |agency=Business Insider ZA |publisher=Business Insider Inc |date=5 November 2020}}</ref>
==References== {{Reflist}}
Category:Law of South Africa