3.2.7 Corporate opportunity and no-profit rules
A Director cannot make a profit if he enters into a transaction that was for the benefit of the company. This can only be done if there is full disclosure and he obtains the consent of the remaining Directors.
If he does so and the profit belongs to the Company the law will disregard the transaction and the company may make claims against the Director.
There are two famous cases in this regard. Da Silva and others vs CH Chemicals (Pty) Ltd and Robinson vs Randfontein Estates Gold Mining.