Industry News
THE CONSEQUENCES OF FAILING TO COMPLY WITH THE FINANCIAL ASSISTANCE PROVISIONS OF THE COMPANIES ACT 71 OF 2008
1. Introduction The importance of complying with the financial assistance provisions contained in section 44 and section 45 of the Companies Act 71 of 2008 (“Companies Act”)...
Are you sure that you are a shareholder?
The consequences of failing to comply with the relevant provisions of the Companies Act 71 of 2008 necessary to prove your shareholding and some possible remedies INTRODUCTION...
Keeping it simple: Dispositions not made for value- means no value at all. Strydom N.O and Another v Snowball Wealth (Pty) Ltd and Others [2022] ZASCA 91
Insolvency proceedings will always be to the benefit of the creditors. When companies are liquidated or private persons are sequestrated, the property of the insolvent vests in...
Beware – pre-contractual negotiations could affect your written contract
Interpreting contracts in South Africa has been no easy feat for our courts. When adjudicating not only do they have to consider legislation and public policy, but they also have...
The difference between a sale of shares and a sale of business
Introduction It is common in legal corporate and commercial practice for a client to seek advice on the sale or purchase of what may generically be referred to as a “business”....
Memorandum of Incorporation Versus a Shareholders Agreement: Some Important Considerations.
Introduction In the context of South African company law, a memorandum of incorporation (MOI) and a shareholders agreement (SHA) are similar documents in that both seek to govern...
Does a trust need to register as a homebuilder?
Does a trust need to register as a homebuilder? Each year, hundreds of new homes are constructed by commercial developers around the country. To regulate this industry, the...
Emoluments attachment order vs Garnishee order
Emoluments attachment order vs Garnishee order. Once judgment is granted in your favor for a debt owed to you or your business, you may feel that you have come to the end of a...
Initiating Divorce Action where the Defendant’s whereabouts are unknown to the Plaintiff
Initiating Divorce Action where the Defendant’s whereabouts are unknown to the Plaintiff A marriage may be dissolved by a court by a decree of divorce on the grounds of an...
Sharia Compliant Financing Arrangements
In Albaraka Bank Ltd v Halaal Royal Snacks (Pty) Ltd, the court emphasized that, “there is nothing intrinsically wrong, unlawful or contrary to public policy in banking...
Deadlock-Breaking Mechanisms
The Lifelines for Agreements to Agree and Agreements to Negotiate in Good Faith In order for a contract to be valid, it needs to fulfill certain requirements. Firstly, the...
Poor Work Performance vs Misconduct
A dismissal is unfair if it is not effected for a fair reason (substantive fairness) and in accordance with a fair procedure (procedural fairness).[1] There are three grounds on...