SAA gets a second wind with new majority shareholder Sarah Smit Mail & Guardian | 11 June 2021 Minister of Public Enterprises Pravin Gordhan has announced a strategic equity partner for the re-launch of the restructured South African Airways. Takatso, a consortium consisting of Johannesburg-based Global Airways, which owns the new budget airline, Lift, and private equity firm, Harith General Partners, will own 51% of the beleaguered airline, which will no longer be dependent on the fiscus. The government will hold on to a 49% minority shareholding. Takatso has committed more than R3 billion to fund the airline. The consortium will provide funding for the airline, which will eventually be listed and the public will be able to buy shares in SAA, Gordhan said on Friday morning. The government will keep a 33% non-dilatable golden share. New SAA board seats will be allocated in accordance with the proportions of ownership. “Our objective of creating a viable, competitive, sustainable airline … takes a huge step forward with this agreement being in place, and with the partnership that we have created as government with this consortium,” the minister said.

The extract above indicates that the government and the private sector will be shareholders in SAA going forward and will both have directors on the Board. 

Critically discuss the optimal requirements for appointments of directors to the Board. 

Explain the concept of director independence on the board in relation to the proposed new SAA board.