Publications

Display Prices and the Consumer Protection Act

The Consumer Protection Act 68 of 2008 (“the Act”) focuses on display prices in order to protect consumers from suppliers who tend to mislead the consumers through incorrectly marketed pricing. The Act defines “price” as follows – “price, when used in relation to— Continue reading “Display Prices and the Consumer Protection Act” »

An Extract From The Guidance Note 05 On Section 28 Of The Financial Intellegence Centre Act, Act 38 0f 2001

“The obligation to report in terms of section 28 of the FIC Act   2.1 The obligation to report in terms of section 28 of the FICA Act arises when transaction is concluded with a client by means of which cash in excess of the prescribed amount: • is paid by the accountable or reporting institution to the client, or to a person acting on behalf of the client, or to a person on whose behalf the client is acting; or • is received by the accountable or reporting institution from the client, or from a person acting on behalf of the client, or from a person on whose behalf the client is acting. 2.2 The obligation therefore extends to cash in excess of the prescribed amount being paid or received by the accountable or reporting institution. 2.3 Payment or receipt of cash includes paying or receiving cash in person as well as paying or receiving it via a third party. Continue reading “An Extract From The Guidance Note 05 On Section 28 Of The Financial Intellegence Centre Act, Act 38 0f 2001” »

Financial Institutions Re-Price Credit Agreements Of Existing Clients

Financial Institutions act within the scope of the law when they proceed to re-price certain facilities in terms of the relevant clauses of the credit agreements/products entered into. In terms of the judgement in NBS [...]

Section 38 Of The Companies Act No 61 of 1973

Section 38 of the Companies Act prohibits a company from providing financial assitance to acquire shares in that company, subject to certain exceptions.  The position in terms of the Corporate Law Amendments Act No 24 of 2006 (the “Act”) Section 38(1) states that a company may not give any financial assistance fot eh purpose of, or in connection with, a purchase or subscription made or to be made by any person for any shares of the company, or where the company is a subsidiary company of its holding company. Continue reading “Section 38 Of The Companies Act No 61 of 1973” »

Covenants

A debt covenant or more specifically, a financial or banking covenant is a solemn agreement between a lender and a borrower; whereby the borrower is required to either engage or refrain from a specific action. The factors which play a large role in determining the scope of a covenant are (i) the degree of the risk undertaken by the lender; (ii) the nature of the borrower; and (iii) whether the loan is a secured or an unsecured loan. The main purpose of a covenant, for an unsecured loan, is to provide more security to the lender; and although this might appear as if the covenants are obstacles creating a burden and a restriction on the borrower during its term, it is of extreme necessity in order to monitor the condition of the borrower and the terms of the loan. Continue reading “Covenants” »

A brief overview of a “Section 21” Company in terms of the 2008 Companies Act

With the commencement of the New Companies Act a Section 21 Company will be referred to as a non-profit company (“NPC”) which is very similar in nature. In terms of the New Companies Act the financial statements of a public companies must be audited. In the case of any other company such statements must only be audited if required by regulation or unless the company voluntarily requests that its financial statements be audited. If a the financial statements of a company are not audited they must be independently reviewed.  Continue reading “A brief overview of a “Section 21” Company in terms of the 2008 Companies Act” »

A brief overview of a Section 21 Company in terms of the 1973 Companies Act

 A Section 21 Company is a company limited by guarantee and requires at least 7 (seven) persons associated for a lawful purpose; –          must have at least 2 (two) directors; –          members are not owners / shareholders as no-one owns a Section 21 Company, it is controlled by the members and managed by the directors; –          does not have a share capital but the liability of its members is limited by the memorandum to the amount which the members undertake to contribute in the event that the company being wound up; –          must comply with the following: Continue reading “A brief overview of a Section 21 Company in terms of the 1973 Companies Act” »

Special Resolutions and The New Companies Act

The Companies Act No.69 of 1973 (“the current Act”) is the current Act used to regulate special resolutions and requirements thereto. The new Companies Act 71 of 2008 (“the new Act”) once introduced will result in a number of changes and new concepts. The objective of this article will be to shed light on all changes regarding resolutions and specifically special resolutions from the current Act in terms of the new Act.  Continue reading “Special Resolutions and The New Companies Act” »

Latest success

Industry:                                              Banking    Transaction:                                       Long term funding    Details:                                                We advised a borrower on a loan facility regarding long term funding    Date:                                                     February 2012   Transaction Value:                           R2 000 000 000  _________________________________________________________________________   Industry:                                              Commercial    Transaction:                                       Joint Venture    Details:                                                We advised a client on a joint venture to consolidate certain business functions with competitors    Date:                                                     February 2012   Transaction Value:                           R80 000 000 _________________________________________________________________________   Industry:                                              Company law    Transaction: Memorandum of Incorporation    Details:                                                We drafted several MOI’s for several companies including non profit companies    Date:                                                     February 2012   Transaction Value:                           N/A _________________________________________________________________________   Industry:                                              Banking law    Transaction:                                       Short term credit facility    Details:                                                Advises a borrower on the terms and security regarding the finance of short term debtors    Date:                                                     February 2012   Transaction Value:                           R500 000 000  _________________________________________________________________________   Industry:                                              Commercial    Transaction:                                       Arbitration    Details:                                                Represent a client in a commercial arbitration    Date:                                                     February 2012   Transaction Value:                           R10 000 000  _________________________________________________________________________   Industry:                                              Commercial    Transaction:                                       Joint Venture    Details:                                                We advised a client on a joint venture to consolidate certain business functions with competitors    Date:                                                     February 2012   Transaction Value:                           R80 000 000 _________________________________________________________________________   Industry:                                              Commercial    Transaction:                                       Advise on breach of contract regarding a Joint Venture    Details:                                                We advised a party to a complex joint venture on breach of contract, right to information    Date:                                                     January 2012   Transaction Value:                           R10 000 000   _________________________________________________________________________   Industry:                                              Banking    Transaction:                                       Credit facility with an option to repurchase property    Details:                                                We advised a lender on a credit facility and reviewed the credit agreement, and related security documents    Date:                                                     January 2012   Transaction Value:                           R12 000 000  _________________________________________________________________________   Industry:                                              Banking    Transaction:                                       Discounting of loan book    Details:                                                We advised a client on a discounting arrangement of their loan book     Date:                                                     January 2012   Transaction Value:                           R350 000 000 _________________________________________________________________________   Industry:                                              Company law    Transaction:                                       Memorandum of Incorporation    Details:                                                We drafted several MOI’s for several companies including non profit companies    Date:                                                     January 2012   Transaction Value:                           N/A _________________________________________________________________________   Industry:                                              Company law    Transaction:                                       Advise on rights and duties of non executive directors    Details:                                                Advises a board of directors on the rights and duties of non-executive directors    Date:                                                     January 2012   Transaction Value:                           N/A   _________________________________________________________________________   Industry:                                              Banking    Transaction:                                       Revolving Credit Facility    Details:                                                We advised a borrower on a credit facility and reviewed the credit agreement, and related security documents    Date:      December 2011   Transaction Value:                           R1 500 000 000   _________________________________________________________________________   Industry:                                              Banking    Transaction:                                       Revolving Credit Facility    Details:                                                We advised a borrower on a credit facility and reviewed the credit agreement, and related security documents    Date:                                                     December 2011   Transaction Value:                           R420 000 000  _________________________________________________________________________   Industry:                                              Commercial    Transaction:                                       Acquisition    Details:                                                We advised a client on complex sale transaction, involving a share swap with a listed company     Date:                                                     December 2011   Transaction Value:                           R18 000 000 _________________________________________________________________________   Industry:                                              Commercial    Transaction:                                       Consultancy Agreement    Details:                                                We drafted a complex consultancy agreement    Date:                                                     November 2011   Transaction Value:                           N/A _________________________________________________________________________   Industry:                                              Commercial    Transaction:                                       Service Level Agreement    Details:                                                We advised a client on a service level agreement    Date:                                                     November 2011   Transaction Value:                           N/A  ________________________________________________________________________   Industry:                                              Banking    Transaction:                                       Credit agreement    Details:                                                We drafted a facility agreement and security documentation    Date:                                                     November 2011   Transaction Value:                           R330 000 000  ________________________________________________________________________   Industry:                                              Commercial    Transaction:                                       International joint venture    Details:                                                We drafted a term sheet involving various international companies regarding the establishment of an Exchange    Date:                                                     November 2011   Transaction Value:                           N/A  ________________________________________________________________________   Industry:                                              Banking    Transaction:                                       Unwind of Securitisation Structure    Details:                                                We advised several parties to the unwind of a securitisation structure    Date:                                                     October 2011   Transaction Value:                           Undisclosed  _________________________________________________________________________   Industry:                                              Commercial    Transaction:                                       Escrow     Details:                                                We advised several companies on the implementation of an escrow arrangement to mitigate counterparty risk   Date:                                                     October 2011                                          Transaction Value:                           R500 000 000 tranches  _________________________________________________________________________   Industry:                                              Commercial    Transaction:                                       Investment programme    Details:                                                We advised an international company on local investments   Date:                                                     October 2011                                          Transaction Value:                           EUR 200 000 000 _________________________________________________________________________   Industry:                                              Commercial    Transaction:                                       Pref-share     Details:                                                Advise a company on a Pref-Share structure   Date:                                                     October 2011                                          Transaction Value:                           R 3 200 000 _________________________________________________________________________   Industry:                                              Commercial    Transaction:                                       Escrow – shares    Details:                                                We are managing shareholding of a company in escrow, which shares are to be managed in terms of a specific designation   Date:                                                     October 2011                                          Transaction Value:                           R undisclosed _________________________________________________________________________   Industry:                                              Commercial    Transaction:                                       Joint Venture    Details:                                                Represented a group of companies on the implementation of a joint venture   Date:                                                     September 2011                                    Transaction Value:                           R 200 000 000 start up assets _________________________________________________________________________   Industry:                                              Commercial    Transaction:                                       Credit agreement    Details:                                                Drafted credit agreement and security documentation   Date:                                                     September 2011                                    Transaction Value:                           R 20 000 000  _________________________________________________________________________   Industry:                                              Commercial    Transaction:                                       Supply agreement    Details:                                                Drafted of supply agreement and related security documentation   Date:                                                     September 2011                                    Transaction Value:                           R 13 800 000 _________________________________________________________________________   Industry:                                              Commercial    Transaction:                                       Co-operation agreement    Details:                                                Drafted of multinational Co-operation agreement   Date:                                                     September 2011                                    Transaction Value:                           R undisclosed  _________________________________________________________________________   Industry:                                              Commercial    Transaction:                                       Agency Agreement    Details:                                                Drafted an Agency agreement for referrals   Date:                                                     August 2011    Transaction Value:                           R undisclosed _________________________________________________________________________   Industry:                                              Commercial    Transaction:                                       Foreign Exchange Transactional Agreement    Details:                                                Drafted a Foreign Exchange Transactional Agreement Date:                                                     August 2011   Transaction Value:                           R undisclosed _________________________________________________________________________   Industry:                                              Commercial    Transaction:                                       Subordinated Loan    Details:                                                Advise on a subordinated loan   Date:                                                     August 2011    Transaction Value:                           R undisclosed  _________________________________________________________________________   Industry:                                              Commercial    Transaction:                                       Tender    Details:                                                Drafted Tender Documents   Date:                                                     July 2011    Transaction Value:                           R undisclosed _________________________________________________________________________   Industry:                                              Banking    Transaction:                                       Working Capital Facility Agreement    Details:                                                Draft a Working Capital Facility Agreement   Date:                                                     July 2011    Transaction Value:                           R 5 000 000 _________________________________________________________________________   Industry:                                              Banking    Transaction:                                       Working Capital Facility Agreement    Details:                                                Draft a Working Capital Facility Agreement   Date:                                                     July 2011    Transaction Value:                           R 4 000 000 _________________________________________________________________________   Industry:                                              Banking    Transaction:                                       Term Loan Agreement    Details:                                                Drafted a Term Loan Agreement   Date:                                                     June 2011    Transaction Value:                           R 11 000 000 _________________________________________________________________________   Industry:                                              Banking    Transaction:                                       Commodity Sale and Repurchase Agreement    Details:                                                Drafted a Commodity Sale and Repurchase Agreement   Date:                                                     June 2011   Transaction Value:                           Credit Product _________________________________________________________________________   Industry:                                              Banking   Transaction:                                       Finance agreement structure   Details:                                                Advise on a finance structure for commodity exports   Date:                                                     June 2011   Transaction Value:                           Credit Product Continue reading “Latest success” »

The Art of Contracting

  The law of contracts forms part of the law of obligations. An obligation is a juristic bond in terms of which the party or parties on one side have a right to performance (“rights”) and the party or parties on the other side have a duty to render that performance (“obligations”). A contract may be said to be concluded upon the meeting of the minds between parties (consensus) pertaining to rights and obligations, subject of course, to such parties having the capacity to act, the performance envisaged in the contract being possible, the performance and the object of the contract is lawful, the legal requirements for such contract having been complied with and the contents of consequences of the contract must be ascertained or be ascertainable. Continue reading “The Art of Contracting” »