No Place To Hide?

Could a South African company successfully recover a penalty and other associated costs it suffers following a finding of contravention of the Competition Act from those directors or management who were involved in the anti-competitive conduct?

This question arises following the recent United Kingdom case of Safeway Stores and others v Simon John Twigger and others where the court allowed an action to proceed to trial in which the company sought to recover a penalty and associated costs by way of indemnity from certain former directors and employees involved in anti-competitive conduct.

That decision of the court of first instance has since been overturned on appeal.

The case has been eagerly followed by senior executives, managers and competition practitioners. In the light of the imminent changes to the South African competition law, the implications should be considered.