Proposals to strengthen cartel laws in South Africa will have a dramatic impact on company directors.
Tough new legislation is being prepared to hold directors personally liable for cartel or price fixing activities. Sanchia Temkin explores how this proposed new law could lead to a new way of regulating business in South Africa. At present competition authorities can only fine companies up to 10% of revenue. Competition commissioner Shan Rambaruth says that fines need to be a disincentive to crime. The proposals to strengthen cartel laws recommend that directors who engage in cartel activity be disbarred or disqualified as well as being fined. There is also a possibility of directors being placed on a blacklist which would be very career limiting. The new law is expected to be presented to the cabinet next month and represents a major change in South Africa’s approach to anti-competition legislation and will bring it in line with best practice internationally.
