South Africa and global insurance, financial institutions, banking and general law know–how
While a debt owed to the state only prescribes after 15 years, a debt owed to a state owned enterprise prescribes after 3 years.
In the Isibaya Fund v Visser and another case, the Fund sought an order under section 424 of the Companies Act 1973 declaring two respondents, who had been directors of a…
Prejudice to a surety will only release the surety from liability if the prejudice is the result of a breach of a legal duty or obligation owed by the creditor. The primary sources of a creditor’s duties and obligations are the principal agreement and the suretyship. If the prejudice complained of results from conduct falling…
The Supreme Court of Appeal judgment in SABC v DA is important not only because it emphasises that the office of the Public Protector, like all state institutions set up in Chapter 9 of the Constitution to support constitutional democracy, is a respected one and that remedial action taken by the Public Protector should not…
The Constitutional Court refused leave to appeal against the Supreme Court of Appeal decision that a “binding offer” to a creditor in business rescue proceedings, made under s 153(1)(b)(ii) of the 2008 Companies Act, is not automatically binding on the creditor.
The appeal had “no prospects of success” which effectively confirms the correctness of the…
With effect from 29 June 2015, the Banks Act has been amended.
The amendments to the Banks Act enable the provisions in the Companies Act on arrangements and compromises to apply to banks under curatorship and to expand the basis on which a curator of a bank may dispose of all or part of…
In an important judgment delivered by the Supreme Court of Appeal on 20 May 2015 in African Banking Corporation of Botswana Ltd v Kariba Furniture Manufacturers (Pty) Ltd and others, the Supreme Court of Appeal held that a purportedly binding offer made to a creditor, who opposes a business rescue plan, is not automatically…
If the board of directors of a company refuses or is unable to institute legal proceedings to recover any loss suffered by the company from a third party, an aggrieved shareholder or director should not rely on Section 163 of the Companies Act to obtain permission from a court to institute or continue legal proceedings…
In the digital age, more and more people are using electronic banking. The risks associated with electronic banking include typing errors which result in money being transferred to an incorrect account or more money being paid than is due. If a person receives money mistakenly transferred to their account and uses that money, knowing that…
The latest appeal court decision of New Port Finance Co v Nedbank reinforces our view that every suretyship securing a company’s debts should specifically preserve the creditor’s rights against a surety despite discharge of any part of the principal debt by a business rescue plan and that creditors should ensure that claims against sureties are…
Section 129 of the National Credit Act does not require a credit provider to prove that a notice by registered post actually came to the attention of the consumer. If a consumer has elected to receive notices by post, a credit provider must prove:
(a) the sending of the notice by registered mail;
(b) that…
