Directors – Environmental Law And Your Increased Personal Liability Risk
Government and our courts are serious about protecting the environment, and NEMA (the National Environmental Management Act) is being strictly enforced.
A new amendment to NEMA provides that directors (and members of CCs) are now jointly and severally liable “for any negative impact on the environment, whether advertently or inadvertently caused by the company or close corporation which they represent, including damage, degradation or pollution”.
Your risks are high
You risk both personal liability in a monetary sense (including the cost of remedial action which could well be substantial) and criminal prosecution, for which the penalties are severe – fines of up to R10m and/or 10 years’ imprisonment.
Note: NEMA also provides strong protection for whistle-blowers – see the next article “Whistle(Blowing) While You Work” for more.
Provided by Taylor and Finlay Attorneys
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