SAA chairperson Dudu Myeni could be banned from directing SA companies for 7 years
The Organisation Undoing Tax Abuse (OUTA) in conjunction with the South African Airways Pilots Association, have instituted legal action against SAA Chaiperson, Dudu Myeni, on the grounds that she is a deliquent director.
The parties are bringing the action against Myeni following claims that she has breached her fiduciary duties as director of the embattled carrier.
Fiduciary duties are typically based on the concept of good faith, and are owed to the company as a result of the control that directors exercise over the assets of the company.
If she is found guilty of being a delinquent director by the court, she will be barred from any directorship role across the country for the next 7 years by order of law. It would also mark the first time in South Africa’s case law that the head of a state-owned enterprise (SOE) has been found guilty of delinquency.
Outa chairman Wayne Duvenage hopes that the case will mark a turning point in South African law as other SOE’s are also brought to court for breaching their duties to the public.
“We further believe it is essential to take this legal action against Ms Myeni, and others in similar positions of standing, when appropriate, in order to hold her accountable for her conduct and transgressions,” said Duvenage.
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