12/06/2026
A business opportunity discovered through a company does not belong to an individual director — it belongs to the company.
This is one of the most important principles in shareholder and corporate governance law.
When directors divert opportunities for personal benefit, it can:
• Damage shareholder confidence
• Create internal disputes
• Result in legal liability
• Harm business growth
For entrepreneurs, effective shareholder management means creating clear rules around:
✔ Director conduct
✔ Conflict of interest disclosures
✔ Decision-making powers
✔ Governance procedures
A properly drafted Shareholders Agreement and MOI can help prevent costly disputes before they arise.
At Stratlaw, we help businesses create structures that protect both shareholders and long-term growth.
stratlaw.co.za