n Without Prejudice - The 'stakeholder inclusive' approach : company law
|Article Title||The 'stakeholder inclusive' approach : company law|
|© Publisher:||JetBlue Publishers (Pty) Ltd|
|Affiliations||1 Institute of Directors|
|Publication Date||May 2012|
|Pages||28 - 29|
Included in the fiduciary duties imposed on directors is that they are required to act in the best interest of the company. Before the Companies Act, (71 of 2008), the King Report on Governance Principles for South Africa, 2009 and the King Code of Governance Principles for South Africa, 2009 ('King III'), it was accepted that 'in the best interest of the company' meant to make decisions that benefitted the shareholders only. Thus companies were focused on maximising shareholder wealth.
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