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Shareholders

Abusing the principle of separate corporate identity: A court warning to trustees of a shareholder trust by Lizanne Visser

It is a well-established principle that a company is a separate juristic person, distinct from its shareholders and directors. This is significant, because it implies ‘limited liability’ – the shareholders will not be held liable for the debts incurred by the company. Only in exceptional circumstances will the courts impose liability on shareholders for the …

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Should reasons be given when shareholders remove a director?

Section 71 of the Companies Act (“the Act”) provides two options for removing a director. First, by an ordinary resolution adopted by the shareholders of the company; and second, by a resolution of board members, other than the director concerned. If shareholders want to remove a director (the first option), must the director be informed …

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