How to Navigate Debt Review when you're a Director...

📘 Debt Review for Company Directors | What It Means for You and Your Business
Knowing how to navigate debt review when you're a director of a company in South Africa is quite relevant.  The moment you start struggling to pay your bills in your company, it normally flows into your personal finances as well.  Finding debt solutions for your personal debt and trying to keep the company afloat can be challenging. 

Can a company director undergo debt review without risking the business?
This question is becoming increasingly relevant in South Africa’s economic climate, especially for entrepreneurs juggling personal financial strain and business responsibilities.

Let’s unpack the facts, the legal framework, and the real-world implications—so you can make informed decisions with confidence.
🧠 What Is Debt Review?
Debt review is a legal process under the National Credit Act (NCA) that helps over-indebted individuals restructure their debt through a registered debt counsellor. 

It offers protection from legal action and asset repossession while ensuring creditors are paid through a court-approved plan.
Learn more about your rights under debt review from the National Credit Regulator.

👔 Can Company Directors Apply for Debt Review?
Yes. Directors are individuals and may apply for debt review in their personal capacity. Importantly:

• Being under debt review does not automatically disqualify you as a director under Section 69 of the Companies Act.
• You may continue to serve as a director unless removed by shareholders through a formal resolution.
• However, your personal credit status may affect the company’s ability to secure funding, especially if you’ve signed personal sureties.

🏢 Will Debt Review Affect the Company?
Here’s where nuance matters. Debt review is personal—but its ripple effects can touch the business:

Company Credit Applications

Banks may decline loans if a director is under debt review and has signed sureties.

Reputation & Trust

Some stakeholders may perceive risk, especially in investor or partnership contexts.

Legal Standing

No direct impact unless the director has breached fiduciary duties or acted recklessly.
Operational Control Directors under review may face pressure to resign, but this is not legally required.
⚖️ Legal Safeguards for Directors
South African law protects directors from personal liability unless:

• They’ve acted recklessly or fraudulently (Section 22 of the Companies Act).
• They’ve signed personal sureties for company debt.
• There’s evidence of abuse of the corporate structure (piercing the corporate veil).

For a deeper dive, read the Accounting Weekly summary of director liability.
💡 Final Thoughts
Debt review can be a lifeline for directors facing personal financial strain—but it’s essential to understand the legal boundaries, business implications, and communication strategy. Transparency, compliance, and proactive planning are key.

If you’re a director considering debt review, speak to a registered debt counsellor and consult with a qualified business debt professional before making any decisions. If you can find both these services under one roof, it will be to your benefit.

We at CureDebt sourced the best legal minds in the country to assist our client in this endeavour. We have established Debt Solutions Experts (business & personal) on board that work hand in hand with us to ensure success and stop debt. We can help free you from the debt trap!

Click here to Request a call back and receive Expert Advice!!!

CureDebt your ONE-STOP-SHOP FOR DEBT RELIEF SOLUTIONS and debt rehabilitation in South Africa. If we cannot help you no one can.

You shouldn’t have to bear the burden of over-indebtedness just because of circumstances beyond your control. And even if there were some mistakes along the way, remember, it’s okay to let go of that guilt! You deserve to move forward without punishing yourself for the past. It's time to level up and embrace a debt-free lifestyle! Let's make it happen today!

Just a quick phone call, and one of our amazing Debt Relief Experts will be there to answer all your questions! Just a little reminder that advice is totally FREE!