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Creditor cannot sue company directors for carrying on its business recklessly

Photo of Patrick Bracher (ZA)
By Patrick Bracher (ZA) on August 19, 2024

Section 218(2) of the Companies Act 2008 provides for civil liability against any person who contravenes the provisions of the Act. A creditor of a company attempted to pursue a damages claim against the directors of the company alleging that section 22(1) prohibits reckless trading by a company and that the directors were guilty of such a…

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Norton Rose Fulbright’s financial institutions team provides straightforward legal updates. Our lawyers offer local insights with an international perspective recognised worldwide. This blog focuses on the South African market and is about sharing knowledge with you. Blog posts are not legal advice.

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