Most South African directors know their company owns vehicles. Far fewer know who answers personally when those vehicles break the law.
Under AARTO, that answer is not “the company”. It is a natural person. And if your business has not deliberately chosen, appointed and trained that person, the law has a way of choosing for you.
Very often, it lands on a director.
AARTO Is No Longer “Coming Soon”
After years of delays, the Administrative Adjudication of Road Traffic Offences (AARTO) Act and its 2019 Amendment Act took effect on 1 July 2026 in 62 municipalities. Johannesburg and Tshwane, where AARTO already operated, now also fall under the amended Act.
Government has signalled a further phase in 2027, which is expected to extend AARTO nationally and switch on the points demerit system across the country.
Companies outside the current phase should not relax. Your vehicles travel. An infringement in a Phase 2 municipality is an AARTO infringement, wherever your head office is.
A Company Cannot Drive, Pay or Appear. A Proxy Can.
A company is a juristic person. It cannot sign a form, receive a notice in person, or stand before an official. So the law requires a human being to act for it.
That person is the proxy.
What the law actually says
Regulation 336 of the National Road Traffic Regulations requires every business that registers vehicles to identify one proxy and one representative for each branch.
Crucially, the same regulation states that the proxy is deemed to be a director as defined in section 332(10) of the Criminal Procedure Act, 1977.
Read that again. Your proxy carries a director’s legal exposure for road traffic matters, whether or not they sit on the board.
Why this matters for the board
Section 332 of the Criminal Procedure Act deals with offences committed by companies. In broad terms, it allows directors and responsible persons to be held personally liable for offences committed by the company, unless they can show they took no part and could not have prevented it.
The proxy system exists to put one clearly identified, accountable person in that position for vehicle matters.
The Unappointed or “Paper” Proxy: Where Directors Get Caught
Here is the danger most boards miss.
Many companies technically have a proxy on eNaTIS. But in practice that proxy is:
- A director who signed the registration forms years ago and has forgotten about it
- An employee who has since resigned, leaving no one actually managing notices
- A name on a form with no training, no authority and no procedures to follow
When there is no properly appointed, functioning proxy, accountability defaults upward. It flows to the people the law already treats as responsible for the company’s conduct: its directors.
In other words, failing to appoint a proxy does not remove the duty. It simply means the duty sits with someone who is not managing it.
What Goes Wrong When Nobody Is Really in Charge
1. Fines escalate, fast
Under AARTO, the proxy must nominate the actual driver when an infringement notice is issued to the company. If the proxy fails to nominate the driver in time, the penalty reverts to the company.
And once the points demerit system is in force, the demerit points will apply to that particular vehicle licence.
Across a fleet, that adds up quickly.
2. Notices go unanswered
AARTO is an administrative, deadline-driven process. Notices are served electronically and by post. Ignored notices progress through courtesy letters to enforcement orders.
3. Enforcement orders block your operations
An outstanding enforcement order can block the issue of vehicle licence discs and other licensing transactions. For a fleet operator, that is not an admin headache. It is a business continuity problem.
4. Personal exposure for the “accidental” proxy
If a director is, by default or by forgotten paperwork, the proxy of record, infringements are addressed to them. Their name, their record and their time are on the line for vehicles they may never have driven.
5. Insurers and financiers are watching
Compliance is increasingly commercially self-enforcing. Insurers and finance houses assess fleet risk. A company that cannot show proper AARTO controls may find that reflected in its premiums and credit terms.
The Fix Is Simple. Neglecting It Is Expensive.
Protecting your directors comes down to four deliberate steps.
Step 1: Formally appoint the right proxy
Choose a senior, reliable employee with real authority over fleet and drivers. Record the appointment properly and update eNaTIS whenever that person changes.
Step 2: Appoint a representative as backup
Regulation 336 requires a representative as well. Make sure that role is filled by an active, informed person.
Step 3: Give the proxy policies and procedures
A proxy without written Policies and Procedures is set up to fail. They need clear rules for driver nomination, vehicle allocation records, deadlines and disciplinary consequences.
Step 4: Upskill the proxy
The proxy role is a legal function, not a filing job. They must understand AARTO timelines, the nomination process, representations and enforcement. Training is the difference between a protected company and a paper proxy.
How SASMiNT Protects Your Directors
SASMiNT has delivered more than 1,000 AARTO sessions over 15+ years to municipalities, government departments and fleet operators. Our work has always centred on one role: the proxy.
We do not manage your fines. That is your proxy’s job, and it must be done in-house. What we do is make sure your proxy can do it properly, so your directors are never left exposed.
Protect Your Board Before the Next Notice Arrives
Do not wait for an enforcement order to discover who your proxy really is.
- Register for a SASMiNT Proxy Upskilling Workshop — practical, interactive training that turns your proxy into a confident, compliant line of defence for your business.
- Get the ePROXY Handbook — SASMiNT’s comprehensive guide to proxy appointment, AARTO compliance and company-wide implementation.
- Speak to our team — contact us via the website or email aarto@sasmint.co.za to discuss your company’s AARTO readiness.
Upcoming sessions
Live on Zoom. Join from your own office chair. First time? See how our webinars work.
Your company’s vehicles are already on the road. Make sure the right person is answering for them.
Frequently Asked Questions
Can a company have no proxy at all under AARTO?
Not lawfully. Regulation 336 of the National Road Traffic Regulations requires every business that registers vehicles to identify a proxy and a representative. The real risk is a proxy who exists on paper only, or one who has left the company. In those cases, responsibility tends to fall back on the directors.
Does the proxy incur demerit points for the company’s drivers?
No. The proxy’s key duty is to nominate the actual driver within the prescribed time, so that the penalty and any demerit points go to the person responsible. If the driver is not nominated, the company bears the financial penalty, and once the demerit points system is active, the points will apply to the vehicle licence.
Our head office is outside a current AARTO municipality. Does this apply to us?
Yes. AARTO applies where the infringement happens, not where your head office is. If your vehicles travel through any Phase 2 municipality, they are already exposed. With a further national phase expected in 2027, every company with vehicles should have a trained, properly appointed proxy in place now.
