A director is not entitled to any remuneration for services rendered in his capacity as company director until approved by shareholders in a special resolution (section 66(9) of the South African Companies Act, 2008). The Gauteng Local Division of the High Court has stated that, “the point about s 66(9) is that, as a matter of policy, the decision of whether or not a director is to be remunerated is placed exclusively in the hands of the shareholders …. and not in the hands of the board of directors or any other party. The rationale for this requirement is to encourage good corporate governance and to curtail excessive remuneration of directors.”
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