Litigation is a costly process that takes up a lot of executive time and has the tendency to destroy business relationships.
It is crucial for entrepreneurs to structure an effective exit strategy for their business. Currently there are six ways that entrepreneurs can make successful exits.
Property investments are growing as a staple in many pedestrian investors’ portfolios. This often takes the form of informal structures which do not adequately consider the attendant legal, governance, and tax factors.
The Companies Act 71 of 2008 allows certain categories of corporate actors to apply to the courts to declare a director to be delinquent in certain circumstances.
These categories of corporate actors can use the order of delinquency to hold directors to account for having grossly abused their fiduciary responsibilities.
The consequences of delinquency are damning, not only in the ban on being a director for up to seven years but also in the reputational damage to the director.
Directors must be wary of any conduct that can expose them to an application for a delinquency order.
The six ways that entrepreneurs can make successful exits.
