The appellants were former directors of Stilfontein Gold Mining Company Ltd (SGM). The Department of Water Affairs and Forestry issued directives under s 19(3) of the National Water Act 36 of 1998 requiring SGM and other mining companies in the KOSH area to pump, manage, treat and contribute to the costs of underground water management. When SGM failed to comply, the Department obtained an urgent High Court order compelling compliance. SGM indicated that it was financially incapable of complying and that its mine had ceased operations. The Department then brought contempt proceedings against SGM and its directors. Although the directors resigned before the contempt hearing, the High Court convicted both SGM and the directors of contempt and imposed fines with suspended imprisonment. The directors appealed to the Supreme Court of Appeal.