1. How do I know how many director's my company can appoint?
The Companies Act 71 of 2008 and the company's memorandum of incorporation (MOI) determines the minimum number of directors and alternate directors, which, in the case of a private company may not be less than one director.
2. Who may serve as a director of a company?
Any person who is not ineligible or disqualified from being a director by law and who holds a valid identity document/passport. A juristic person cannot be a director of a Non-Profit company.
3. How long can a director serve as a director of a company?
A customised MOI will also set out the eligibility requirements for a director as well as the directors' term of office. In the case of a standard MOI, the term of office is indefinite and there is no restriction on the number of directors. New directors may be elected by the Board of Directors when there is a vacancy or the company wishes to add directors.
4. When does a vacancy arise on a company's board of directors
Vacancies on the board arise if a director:resigns or dies, ceases to hold the office, title or designation in the company that entitles the person to be an ex officio director,becomes incapacitated or disqualified or is removed.
5. Is the resignation of a director the same as removal of a director.
No, resignation of a director and the removal of a director are two distinctly different legal processes.
6. Who may appoint directors?
A director may be appointed by the Board of Directors, unless the Memorandum requires shareholder approval.