South Africa: Companies Bill introduced into the National Assembly

As part of the reform of company law in South Africa, a Companies Bill has been introduced into the National Assembly. This will make significant changes to South African company law and is the most important legislation in this area for 30 years.  

Clause 76 of the Bill - titled "Standards of directors conduct" - is of particular interest and in subsection (2)(b) provides that a director must:

"communicate to the board at the earliest practicable opportunity any information that comes to the director’s attention, unless the director— 

  (i) reasonably believes that the information is—
    (aa) immaterial to the company; or
    (bb) generally available to the public, or known

           to the other directors; or
  (ii) is bound not to disclose that information by a legal or ethical obligation of confidentiality"

What will be regarded as an ethical obligation of confidentiality?

For further information see:
Copy of the Bill (at 27 June 2008) | Government policy document - "company law for the 21st century" (2004) | Parliamentary Monitoring Group | The influence of English company law in South Africa is considered here. 

Postscript (30 June 2008): It has been reported that a third edition of the King Report on Corporate Governance will be published later this year. 

Update (15 October 2008): Click here for the latest version of the Bill.