Removal of Directors: Does it constitute dismissal under the Labour Relations Act?

The Companies Act No. 71 of 2008 (‘’the Act’’) regulates the removal of directors. A director of a company may be removed as a director in terms of section(s) 71 (removal of directors) and 137(5) (effect on shareholders and directors) of the Act.

Under section 71 of the Act a director may be removed from office by ordinary resolution (a resolution adopted with support of more than 50% of the voting rights exercised on the resolution) of the shareholders in a general meeting, by the board of director’s resolution, and by the Companies Tribunal in certain instances.