How delinquent director orders work in South Africa

Under section 162 of the Companies Act 2008 a High Court can declare a director delinquent, for at least seven years or, in some cases, for life.

Grounds under section 162(5)(c), as summarised by the Johannesburg High Court in 2025, include grossly abusing the position of director, taking personal advantage of information or opportunity, intentionally or by gross negligence causing harm to the company, and wilful misconduct or breach of trust.¹
The court said each ground requires serious misconduct, and that gross negligence is equivalent to recklessness.¹
The court described a declaration as applying for a minimum of seven years under section 162(6)(b)(ii), which the court can extend. In the same case it declared one former executive delinquent for life, another for 15 years and a third for seven years.¹
Applications can be brought by the company itself, as Delta Property Fund did, or by others such as civil society groups. OUTA and the SAA Pilots' Association obtained a lifetime declaration against former SAA chair Dudu Myeni in May 2020.^1,2
The Delta order records that the declarations are subject to the possibility of later suspension.¹

Sources

High Court of South Africa, Gauteng Division, Johannesburg (via SAFLII), Delta Property Fund Limited v Nomvete and Others [2025] ZAGPJHC 64 (21 January 2025)
Organisation Undoing Tax Abuse (OUTA), Taking on delinquent directors at SOEs