Juristic persons (including companies and close corporations) are seen as one entity in total control of their assets. These juristic persons constitute a separate legal entity which is apart from those who control its day-to-day operations. All ...
Pre-commencement creditors vs post-commencement creditors
In the case of Mashwayi Projects (Pty) Ltd (the Appellants) // Wescoal Mining (Pty) Ltd) (the Respondents) 2 All SA 57 (SCA), the Supreme Court of Appeal (“SCA”) decided whether post-commencement creditors may vote on business rescue proceedings ...
A perfect double Act: Changes to the Companies Act 71 of 2008, effective as of 27 December 2024
A veritable sea change has occurred in the field of commercial law, with not one but two Amendment Acts being signed into law in July 2024. Parts of the Companies Amendment Act 16 of 2024 (“First Amendment”) as well as the entirety of the Compani ...
Finding someone to step into your shoes: Succession planning for your business
The Eskom crisis demonstrates again the importance of proper succession planning - IoDSA The current crisis at Eskom has a number of governance lessons for South Africa - one of which is the vital importance of proper succession planning for k ...
DISPOSING OF THE GREATER PART OF A COMPANY’S ASSETS OR UNDERTAKING
In terms of section 112(2) of the Companies Act, a company may not dispose of all or the greater part of its assets or undertaking (Disposal) unless the Disposal was approved by a special resolution of shareholders, in accordance with section 115 of ...
DEBT RELIEF FOR OVER-INDEBTED CONSUMERS
Borrowing money has become easy in today’s society. Many consumers are over-indebted in that they are unable to pay their financial obligations timeously. Many consumers over-commit themselves and repayments of debt become significantly difficult for ...
PRODUCT LIABILITY UNDER THE CONSUMER PROTECTION ACT
Section 61 of the Consumer Protection Act, 2008 (“CPA”) provides that producers, importers, distributors and/or retailers of goods (collectively the “Supplier(s)”) may be held liable for any harm caused as a result of the supply of unsafe goods, pr ...
VAT LIABILITY FOR NON-EXECUTIVE DIRECTORS
On 10 February 2017, South African Revenue Service (‘SARS’) passed a Binding General Ruling(VAT) 41 (‘BGR 41’) which deals with the VAT treatment of the activities conducted by Non-Executive Directors (‘NEDs’) and clarifies whether those activities ...
INCIDENTAL CREDIT AGREEMENTS: DEMYSTIFYING THE NATIONAL CREDIT ACT 34 OF 2005 (THE “NCA”)
The quagmire of the NCA The NCA was promulgated primarily with the intention of regulating the credit industry, as well as ensuring the protection of consumers in accessing credit. However, despite the laudable intention of the legislature, the NCA ...
NEW DEVELOPMENTS ON REGISTERING AS A CREDIT PROVIDER
Currently, a credit provider providing credit in excess of R500,000 must be registered with the National Credit Regulator (“NCR”) in terms of the National Credit Act (“NCA”). This R500,000 credit provider registration threshold is calculated by det ...