Mailbox: What obligations do the Guptas have if Oakbay goes insolvent?

Biznews community member Steve Meihuizen writes:

The stories of the resignation of Oakbay investments directors made me wonder what the situation would be if a company should at any stage go insolvent. Are directors of such a company in any way held personally liable if they are still acting as directors when such an event occurs?

I hope you could help.

Prof Matthew Lester replies:

A director can be personally liable in certain circumstances here if due care was not taken or the provisions of the Companies Act were not followed.

But it does not happen often enough as liquidators are mindful of litigation costs.

What is also interesting is whether a class action can be brought against the directors but this route is very new in SA law.