Abstract

Robust regulation of disqualification and conduct of company directors is one of the keys to success of companies in the world. This study set out to investigate the likelihood for the effectiveness for Malawi’s legal regime for the disqualification and conduct of directors of companies. The study was premised on the hypothesis that the legal regime for eligibility and conduct of directors in Malawi has not been effective under the Companies Act 1984 and the Companies Act 2013. Using doctrinal research paradigm, comparative approach and qualitative methodology, and descriptive analysis of data, the study explored the events that led the Reserve Bank of Malawi to revoke the banking licence of Finance Bank Malawi Limited, examined the said 1984 and 2013 statutes and compared the legal framework for disqualification and conduct of directors under the Malawi legal regime with the regime in the United Kingdom. The study employed desk research and personal interviews techniques to collect data for the purposes of this research. The study found that the law relating to the eligibility and conduct of directors was deficient in the handling of directors for the defunct Finance Bank Malawi Limited as neither the internal regulators of corporate governance such as shareholders nor the public regulator, the State, held the directors liable for the civil and criminal offences they had committed. The study further found that the law for disqualification of directors in Malawi has not been effective because it is deficient in respect of provision for grounds for disqualification and enforcement mechanisms. In the end, the research found that the Malawi’s legal regime for the disqualification and conduct of directors is not effective because it is inadequate and deficient in several respects including enforcement and thus the hypothesis for the study was proven. The implications of the findings on theory, practice, law reform and research include a recommendation for enactment of a robust legal regime for disqualification and conduct of directors and development - by both private and public regulators of corporate governance - of interest for enforcement of the law.

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School	: School of Law, Economics and Government
Issued Date	: 2022

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