This blog was co-authored by Jos Fogle, Candidate Attorney.
In August 2024, the High Court found that a shareholder does not have the authority to institute legal proceedings on behalf of the company it is a shareholder of without (1) a resolution from the underlying company’s board of directors or (2) express authority in the
This blog was co-authored by Sebenzile Magagula, Candidate Attorney.
A claim http://www.saflii.org/za/cases/ZANWHC/2023/102.html was dismissed by the High Court on the grounds that the respondent lacked the requisite legal standing to litigate on behalf of her husband who was the party to the contract sued on.
The claimant sued for delictual damages arising from failure by
On 24 May 2023, the Minister of Trade, Industry and Competition published the Companies Amendment Regulations, 2023 (Amendment Regulations). The Amendment Regulations were drafted in consultation with the Companies and Intellectual Property Commission (CIPC) to align the Companies Regulations with the General Laws (Anti-Money Laundering and Combating Terrorism Financing) Amendment Act, 2022 (General Laws Amendment
This blog was co-authored with Thokola Zungu, Candidate Attorney.
When a company in business rescue is a creditor of another company in business rescue, the right to vote on the business rescue plan for the debtor company vests in the business rescue practitioners of the creditor company and not in its board of directors.
This blog was co-authored by Bongubuhle Sibanda, Candidate Attorney
During the lifespan of a company, there are occasions when a director is unable to perform their functions as envisaged in the Companies Act, 2008. Despite such occasions, the business operations cannot be halted. It is in these instances that an alternate director may take up
This blog was co-authored by: Zinhle Mdluli, associate designate
Section 75 of the Companies Act states that if a director has a personal financial interest in a matter that has been tabled at a board meeting, that director has a duty to disclose their interest and any known material information relating to the matter and
This blog was drafted by John Bell, Director.
The approval of schemes of arrangement in terms of section 115 of the Companies Act, 2008 is becoming more prevalent in the field of mergers and acquisition as well as financial restructurings. They are as such receiving more scrutiny from our courts.
In a recent matter the
This Supreme Court of Appeal judgment confirms that the common law derivative action is available to members of close corporations.
The common law derivative action was abolished in section 165(1) of the Companies Act and replaced with a statutory derivative action for companies.
Sections 49 and 50 of the Close Corporation Act do not exclude
This blog was co-authored by: Tshegofatso Rammutla, Associate; Darragh Meaker, Associate Designate and Devan Falconer, Candidate Attorney.
The proposal in the Companies Amendment Bill of 2021 published for public comment on 1 October 2021 for the exclusion of subsidiary companies from the limiting provisions relating to inter-group financial assistance should be enthusiastically supported.
Section 45
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