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So far pietervdm has created 277 blog entries.

Risky Business

‘Risk management’ is a term that has been receiving a lot of attention since the 2007 financial crisis. The financial crisis was a massive failure which took all by storm, apart from the unpopular few who predicted it. Along with corporate governance and unscrupulous auditing, risk management has been identified as one of the biggest [...]

Sectional Title Schemes and Management and Conduct Rules

Sectional title schemes are becoming increasingly popular in South Africa whether as a primary residence or as an investment opportunity. They afford owners the opportunity to purchase and own a unit within the scheme and an undivided share in the common property thereof. Section 35(4) of the Sectional Titles Act No. 95 of 1986 (“STA”) [...]

Protection of Employees during an Acquisition

The protection of employees and employees’ rights is a fundamental aspect of labour law in South Africa. South Africa, partly as a result of its history of past human rights abuses, is specifically aware of the rights of employees in relation to the employment relationship with employers. The abundance of ready labour in South Africa, [...]

Delinquency of Directors

Directors of a company exercise a large amount of control over the company’s business affairs. The position of a director is legislatively controlled by the Companies Act No. 71 of 2008 (“Act”) and in particular, section 76 of the Act provides for the standards of conduct expected from directors, namely that directors must act in [...]

The Impact of the Companies Act on Close Corporations

A close corporation (“CC”) is a company with juristic personality where a select few individuals usually perform all of the functions of the corporation and allow it to operate in a similar vein to that of a partnership. The Close Corporations Act No. 69 of 1984 (“CC Act”) created simple and clear regulations to govern [...]

Broad-Based Black Economic Empowerment

After the 1994 democratic elections the South African government was mandated with the task of redressing the inequalities of the past. With that in mind various legislative initiatives have been implemented in an attempt to redress the imbalances inherent in the economy. One such initiative is Broad-Based Black Economic Empowerment (“BEE”). The BEE framework is [...]

Corporate Opportunities and a Directors Fiduciary Duty

It is a well-established rule of Company Law that directors have a fiduciary duty to exercise their powers in good faith and in the best interests of the Company.  They may not make a secret profit or otherwise place themselves in a position where their fiduciary duties conflict with their personal interests (Robinson v Randfontein [...]

Public Benefit Organisations

A public benefit organisation (“PBO”) is an entity which is created to carry on some form of public benefit activity (“PBA”). Due to the fact that a PBO acts in the public interest, it enjoys certain tax benefits. These benefits include not paying income tax, donations tax and if the PBO has section 18A approval [...]

Employment Contracts

South African labour and employment laws governing the terms and conditions of employment contracts are mainly set out in the Basic Conditions of Employment Act (“BCEA”). The BCEA applies to all employees who ordinarily work in South Africa except members of the State Security Agency and unpaid volunteers working for charities. The legislation therefore covers [...]

The Gareth Cliff Case

Most agreements do not have to be in writing to be legally binding (the exceptions to this rule being suretyships, contracts for the sale of immovable property and certain executory donations). It is trite in our law that an agreement, whether through words (an express agreement) or by conduct (a tacit agreement), is reached when [...]

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