Changing company director details on a CIPC registration certificate is an important step if a new director is added, or an existing director resigns or is removed. The memorandum of incorporation (MOI) determines the minimum number of directors and alternate directors, which, in the case of a private company, may not be less than one.
A customised MOI will also set out the eligibility requirements for a director, as well as the director’s term of office. In the case of a standard MOI, the term of office is indefinite and there is no restriction on the number of directors. New directors may be elected by the Board of Directors when there is a vacancy, or when the Company wishes to add directors.
Vacancies on the board arise if a director:
- resigns or dies;
- ceases to hold the office, title or designation in the company that entitles the person to be an official director;
- becomes incapacitated or disqualified; or
- is removed.
A director may be removed by:
- An ordinary resolution adopted at a shareholder’s meeting by the persons entitled to exercise voting rights in the election of that director. The director concerned must be given notice of the meeting and the resolution, at least equivalent to that which a shareholder is entitled to receive, regardless of whether that director is a shareholder. The director must be afforded a reasonable opportunity to make a presentation in person or through a representative to the meeting, before the resolution is put to a vote.
- A resolution of the board, because it has been determined that the director in question has become ineligible or disqualified in terms of section 69 of the Act, is unable to perform the functions of a director and is unlikely to regain that capacity within a reasonable time, or has neglected or been derelict in the performance of the functions of a director.
- An order of the court confirming the resolution of the board or removing the director from office, if the court is satisfied that the director is ineligible or disqualified, incapacitated, or has been negligent or derelict.
A director may be appointed by the Board of Directors, unless the MOI requires shareholder approval.
Contact us if you require changing company director details in respect of your business.