MCL5902
ASSIGNMENT 1 2025
UNIQUE NO. 894399
DUE DATE: 22 MAY 2025
, MCL5902
Assignment 1 2025
Unique Number: 894399
Due Date: 22 May 2025
Company Law 2
1.1 Critical Analysis of the Quotation on Directors’ Duties and Corporate
Opportunities
1. Introduction
The quotation under analysis highlights the complexities and uncertainties surrounding
directors’ duties in relation to corporate opportunities under the Companies Act
71 of 2008. It acknowledges that statutory provisions, when interpreted alongside
common law, have helped clarify directors’ obligations. However, the author also points
out unresolved ambiguities, particularly regarding the expropriation of corporate
opportunities. This essay will critically analyze this claim by referring to relevant
provisions in the Companies Act, case law, and academic sources.
2. Directors’ Duties under the Companies Act 71 of 2008
The Companies Act of 2008 has codified key fiduciary duties that were previously based
on common law principles. The most relevant provisions are:
2.1 Section 76: Duty to Act in Good Faith and Best Interests of the Company
Section 76(2)(a) requires directors to act in good faith and in the best interests
of the company.
Section 76(2)(b) imposes a duty of care, skill, and diligence, similar to the
common law duty of care.
ASSIGNMENT 1 2025
UNIQUE NO. 894399
DUE DATE: 22 MAY 2025
, MCL5902
Assignment 1 2025
Unique Number: 894399
Due Date: 22 May 2025
Company Law 2
1.1 Critical Analysis of the Quotation on Directors’ Duties and Corporate
Opportunities
1. Introduction
The quotation under analysis highlights the complexities and uncertainties surrounding
directors’ duties in relation to corporate opportunities under the Companies Act
71 of 2008. It acknowledges that statutory provisions, when interpreted alongside
common law, have helped clarify directors’ obligations. However, the author also points
out unresolved ambiguities, particularly regarding the expropriation of corporate
opportunities. This essay will critically analyze this claim by referring to relevant
provisions in the Companies Act, case law, and academic sources.
2. Directors’ Duties under the Companies Act 71 of 2008
The Companies Act of 2008 has codified key fiduciary duties that were previously based
on common law principles. The most relevant provisions are:
2.1 Section 76: Duty to Act in Good Faith and Best Interests of the Company
Section 76(2)(a) requires directors to act in good faith and in the best interests
of the company.
Section 76(2)(b) imposes a duty of care, skill, and diligence, similar to the
common law duty of care.
