Companies Act, 1973 (Act No. 61 of 1973)Chapter XI: Accounting and DisclosureDirectors' Report299. Directors' report |
| 1) | Except in the case of a company which is a wholly owned subsidiary of any other company incorporated in the Republic, every company shall, as part of its annual financial statements, lay before the annual general meeting a report by the directors with respect to the state of affairs, the business and the profit or loss of the company or of the company and its subsidiaries, if any. |
| 2) | The directors' report shall deal with every matter which is material for the appreciation by the members of the company of the state of affairs, the business and the profit or loss of the company or of the company and its subsidiaries, if any, and shall for that purpose be in accordance with and include at least the matters prescribed by Schedule 4, in so far as these are applicable, and comply with any other requirements of this Act. |
| 3) | Any director of a company who fails to take all reasonable steps to ensure compliance with the provisions of this section, shall be guilty of an offence. |