Chartered Accountant & Business Consultant - Meredith Harington
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Business News Articles

So, you want to be a business owner?

Many employees look at their bosses as well as the company they are working for and say – “I can do that. And better!” Similarly, many bosses in the SME space look at a key person in their organisation and believe that they need to give that employee some skin in the game in the form of shareholding in order to retain them. Both notions have their place in the right place and circumstances, but both are fraught with danger. Here are some of the things that both owners and potential future owners need to consider before taking the next step.

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Managing reputational damage in times of crisis

No one really thinks it will ever happen to them. That is, until the dominoes of disaster start falling when the next crisis breaks, and the next unsuspecting exco and communication management team have to go into full swing to protect the company's reputation.

2017 and 2018 were not good years for companies handling crises. The number of casualties was alarming. We had our pick of it – from motoring, to beverages, to aviation, and everything in between.

Some did better than others. Some failed in round one, but at least went back for round two and got it right then. Some never bothered to try harder.

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Responsibilities of directors

Section 66 of the Companies Act No. 71 of 2008 (the “Act”) stipulates that the business and affairs of a company must be managed by or under the direction of its board of directors. The Act proceeds to codify the standard of conduct expected of directors and makes provision for directors to incur personal liability in instances of non-compliance. In the current business environment where poor governance and non-compliance with legislation frequent the press headlines, it is as important as ever to remain mindful of the statutory duties of directors.

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