Delinquent directors under the Mauritius companies Act 2001: A comparative study
With the rise in the activities of delinquent directors, great treats have been placed on the economy of many countries as well as on investors’ confidence. Mauritius is of no exception. In fact, Transparency International (2017) which measures public sector corruption, has given Mauritius a score of 50 points out of 100 in its 2017 Annual Corruption Perception Index. Furthermore, Transparency International (2017) indicates that one of the key factors which contributes to corruption in Mauritius is director delinquent activities. Hence, one can deduce that the lack of an appropriate legal framework results in a rise in fraudulent activities by directors. This research aims identifying the loopholes in Mauritius laws regarding provisions on director’s disqualification. For this purpose, a comparative analysis will be made between Mauritius Companies Act 2001 and the UK Company Directors’ Disqualification Act. The methodologies for the research are in essence comprised of the black letter approach which will analyse the legal provisions relating to directors in Mauritius and UK. Journals, books, reports amongst others will be also examined. A comparative study will also be carried out with respect to the laws on directors of the UK. The paper aims at responding to the research objectives set out above. In particular, it is suggested that the laws of Mauritius should be amended to provide for some measures that have been adopted by the UK to bring a reduction in the number of delinquent activities committed by directors in Mauritius.