Navigating the complexities of removing a director who is also an employee

4 Feb 2025

In corporate governance, the process of removing a director is rarely straightforward - especially when that director is also an employee. The legal complexities span company law, employment law, and contractual obligations, requiring a carefully structured approach to ensure compliance and mitigate risks.

In the latest episode of the Cox Yeats podcast, legal experts Randhir Naicker, Benjamin Meadows, Jason Goodison, and Sunil Hansjee unpack the key legal and procedural considerations when removing a director. They explore:

The difference between removing a director from the board and terminating their employment
The legal framework that governs shareholder and board-initiated removals
How Section 197 of the Labour Relations Act applies when a director’s employment is transferred
Key risks, best practices, and strategies to ensure a fair and legally sound process

For business leaders, HR professionals, and legal teams, understanding these legal intricacies is crucial for making informed decisions while safeguarding the organisation.

Listen to the full episode to gain expert insights into corporate governance best practices.

Navigating the complexities of removing a director who is also an employee

#CorporateLaw #EmploymentLaw #CorporateGovernance #BusinessLeadership #CoxYeats #LegalInsights

Cox Yeats is a leading South African law firm, with offices in Johannesburg, Durban and Cape Town. Our expert partners work across 15 different industries and our collaborative spirit means our one legal platform can serve a range of requirements. With insight and pragmatism, we tailor our approach specifically to the needs of each client, providing solutions that are efficient, effective and always strategically considered.