Janse van Rensburg's replacement, Daniel Mantsha, has since been implicated in state capture.
"I think the new board assumed their functions by the end of July. It was a relatively short period that transpired ... I don't know on what information that decision was made. My understanding was ... the joint venture with VR Laser, it was a local company, it did not have a footprint in Asia, and in India specifically," Janse van Rensburg told the commission.
The deal, which was blocked, would have seen the Gupta's sell off Denel's intellectual property to India.
"It did not make commercial sense or strategic sense," said Janse van Rensburg.
Asked by deputy chief justice Raymond Zondo who would have benefited more from the deal, she answered: "On the holding structure, the benefit would have been for VR Laser."
The commission will continue with testimony from former VR Laser shareholder Benny Jiyane.