Publications

What every CEO should consider regarding the implementation of the provisions of the new Companies Act of 2008

My advice to the CEO would be the following: TrainingHave a training session for all the appointed directors in the group including non-executive directors, independent non-executive directors and the chairman. Also inform all the referred persons about the changes regarding the constitutional documents, explain the, alterable provisions and non-alterable provisions. Continue reading “What every CEO should consider regarding the implementation of the provisions of the new Companies Act of 2008” »

Directors Responsibilities and Liability in terms of the new Companies Act 2008

1.     General responsibilities of the board of  directors include: 1.1.   oversight of control and accountability; 1.2.   development of strategy and performance objectives; 1.3.   systems of risk management and internal compliance and control, codes of conduct and legal compliance; 1.4.   monitoring management’s performance and implementation of strategies and ensuring appropriate resources are available; 1.5.   approving and monitoring the progress of major capital expenditure, capital management and acquisitions and divestments; 1.6.   approving and monitoring financial and other reporting; and 1.7.   board appointments, removals and succession planning. Continue reading “Directors Responsibilities and Liability in terms of the new Companies Act 2008” »

Consumer Protection Act: Keep it Plain and Simple

The Consumer Protection Act 68 of 2008 requires in terms of section 22 that all agreements, which fall within the application of the Act, must be written in plain and simple language. The plain language provision applies to all notices, documents and visual representations in addition to all agreements. The test of interpretation has to some extend shifted from want you say to what was heard. In 2000, major banks in South Africa adopted the Code of Banking Practice voluntary which set out their relationship with customers. Among other undertakings, the banks promised to: Continue reading “Consumer Protection Act: Keep it Plain and Simple” »

To audit or not to audit in terms of the new Companies Act of 2008?

 To audit or not to audit in terms of the new Companies Act of 2008? In the article by Sanchia Temkin’s Danger of new Companies Act leading to ‘significant rise in fraud, the concern is raised that by doing away with audits for medium size and large companies opportunities for fraud may be created. In another article of note, namely Law may reduce accountability by Ann Crotty the same concerns are raised. The Draft regulations state that the following companies must be audited: Continue reading “To audit or not to audit in terms of the new Companies Act of 2008?” »

The Consumer Protection Act and the Registration of Business (Trading) Names

The Consumer Protection Act and the Registration of Business (Trading) Names The Consumer Protection Act, No 68 of 2008, (“the Act”) will come into force on 01 April 2011. The Act will prohibit any use of any unregistered business names, unless such a person trades under the business’s registered name, a close corporation, company, or his / her own name as is recorded in that person’s identity document. Therefore all “trading as” names will have to be registered under that name under the Act. Continue reading “The Consumer Protection Act and the Registration of Business (Trading) Names” »

VDMA Blog Information

 

Covenants and the Management thereof

Covenants and the Management thereof With more specialised financial products these days and with more competition between financiers, we tend to see that financiers are more focused on mechanisms and early warning systems to ensure repayment of facilities through the introduction of covenants in addition to security than to finance against security only. The days of security lending only on sizable loans are over, financiers want to have certainty regarding cash flow. Continue reading “Covenants and the Management thereof” »

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 [...]