Fraud - Director Reporting

[wesselskathy]

Subject to the Companies Act directors can loose their position if found guilty of fraud.

How is this effected? And how does one ensure its affected.

CIPROs hotline doesn't work.

[Dave A]

Subject to the Companies Act directors can loose their position if found guilty of fraud.

They would have to be found guilty of fraud in a court of law to be disqualified.

[wesselskathy]

.....Yes, if this happens, who disqualifies him or removes him???

[Dave A]

I expect someone (I guess it could be any concerned citizen) needs to forward the judgement to CIPRO. I certainly wouldn't rely on CIPRO actively scanning court judgements.

There are a few other levers in society. Banks, for example, will do credit checks on the directors of a company. If one of the directors has an adverse report it does affect the relationship. If that adverse report related to fraud, I'd expect hope the banks wouldn't touch the company with a barge pole.

[wesselskathy]

I was really hoping someone may have the correct avenue to contact at CIPRO...