South Africa is an attractive destination to invest in. It has a sophisticated banking system, along with a legal system that is world class and courts that enforce the rule of law. The Johannesburg stock exchange (JSE) is the largest stock exchange in Africa. The JSE has embarked on a project to simplify
Stephen Kennedy-Good
Estoppel cannot negate illegality
By Stephen Kennedy-Good on
This blog was co-authored by: Kristen de Wet, Candidate Attorney
In Siemens Proprietary Limited v PRSA , the court confirmed that the doctrine of estoppel cannot render an agreement enforceable if it is invalid. This is particularly the position where it is in the public interest to ensure an agreement is unenforceable.
Estoppel refers to…
Companies Amendment Bill, 2021 – Securities and s45 Financial Assistance to subsidiaries
By Stephen Kennedy-Good & Steve Chemaly on
This blog was co-authored by James Donald, candidate attorney
The Ministry of Trade, Industry and Competition published the Companies Amendment Bill 2021 for public comment by 31 October 2021. The Bill proposes to amend the definition of “securities” and to exclude subsidiary companies from the financial assistance requirements in section 45 of the Companies Act…
Companies Amendment Bill 2021 blog series – Amending the Memorandum of Incorporation
By Stephen Kennedy-Good on
This blog was co-authored by Stacy Smit, candidate attorney
The Companies Amendment Bill, 2021 published on 1 October 2021 for public comment proposes amendments to section 16 of the Companies Act of 2008 and provides clarity as to when a change to a company’s Memorandum of Incorporation (MOI) will take effect.
Section 16 of the…
Companies Amendment Bill Blog Series – Access to more Information
By Stephen Kennedy-Good on
This blog was co-authored by: Preshanta Poonan, candidate attorney
The Companies Amendment Bill, 2021 published on 1 October 2021 for public comment proposes amendments to section 26 of the Companies Act of 2008 which outlines the requirements for a company to make documents accessible for inspection to third parties aligned with the provisions of the…
Companies Amendment Bill, 2021 – Directors’ Remuneration and Beneficial Ownership
By Stephen Kennedy-Good on
This blog was co-authored by: Hishaam Khan, candidate attorney
As we continue to unpack the proposed amendments of the Companies Amendment Bill, 2021 in this series we consider directors’ remuneration and beneficial ownership.
Director’s remuneration
Remuneration of directors continues to be in focus.
The Bill proposes to introduce various disclosure and reporting requirements in respect…
Companies Amendment Bill 2021 comments – Appointing a Social and Ethics Committee
By Stephen Kennedy-Good on
This blog was co-authored by: Uzair Bulbulia, candidate attorney
On 1 October 2021, the Ministry of Trade, Industry and Competition published the Companies Amendment Bill, 2021 for public comment. The Bill proposes amendments to the requirements for a company to establish a Social and Ethics Committee (SEC) in terms of section 72 of the Companies…
Companies Amendment Bill 2021 comments – blog 1 of a series
By Stephen Kennedy-Good on
This blog was co-authored by Uzair Bulbulia, candidate attorney
On 1 October 2021, the Ministry of Trade, Industry and Competition published the Companies Amendment Bill, 2021 (2021 Bill) for public comment. The 2021 Bill seeks to amend the Companies Act, 2008 and is a revision of the bill that was published for public…
Understanding the ranking of creditors within the liquidation process
By Thabang Dikgale & Stephen Kennedy-Good on
The number of liquidations and sequestrations will, unfortunately, increase due to the COVID-19 pandemic. Preference shareholders with unsecured loans and third party unsecured creditors must be aware of the ranking of unsecured creditors’ claims in the liquidation process. This note specifically focuses on the unsecured loan given by a preference shareholder and not the ranking…
Director’s disclosure of personal financial interests – What happens when you don’t walk away from the table?
A director of a company who has a personal financial interest, or knows that a related person has a personal financial interest, in a matter to be considered at a board meeting must disclose that interest and any other material information relating to the matter before it is discussed at the board meeting (section 75…