Section 209 of The Companies Act No. 17 of 2015: Limitations on the exercise of the power to make provision for employees
(1) A resolution of the directors under section 208(3) is not sufficient authorityfor payments to or for the benefit of directors, or former directors.
(2) The power conferred by section 208(1) is subject to compliance with anyother requirement specified by the company's articles.
(3) Any payment under section 208 is void unless it is made—(a) before the liquidation of the company has commenced; and
(b) out of profits of the company that are available for the payment of dividends.
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