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 [...]

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 [...]

The Corporate Opportunity Rule

In sharp contrast to the non-profit rule is the common law corporate opportunity doctrine which finds its application in South African company law in instances where a director misappropriates and exploits for himself, an economic opportunity of the company. Such an opportunity is said to be a ‘corporate opportunity’ or one which is the ‘property’ [...]

VDMA ranked as Top Law Firm in South Africa for Unlisted Transactions Deal Value for First Quarter 2015 by leading industry publication Dealmakers

The Ratings are as follows:   We would like to take this opportunity to say a big thank you to our valued clients who have entrusted us with their transactional work in the first quarter of 2015. We are again very grateful for your continued support and loyalty. Furthermore, we would like to thank our [...]

The Constitutional Court’s stance on Mr Shuttleworth’s case

In the South African Reserve Bank and Another v Shuttleworth and Another (CCT194/14, CCT199/14) [2015] ZACC 17 (18 June 2015), the case which has been deliberated extensively and contended through the hierarchy of the South African judicial system, the Constitutional Court (“CC”) has made a decision on the various challenges which Mr Shuttleworth has brought [...]

Final Liquidation Order does not dismiss Business Rescue Opportunities

The process of business rescue as provided for in the Companies Act 71 of 2008 (“the Companies Act”), which although is still experiencing some teething issues, has become well established within business practice and has become a worthy alternative to the statutory norm of liquidation. One of the main topics in the business rescue process [...]

Consumer Protection Act and its application to residential leases- is it in the ordinary course of business of the lessor?

In order for the Consumer Protection Act 68 of 2008 “CPA” to apply to a lease agreement, the lessee must qualify as a consumer, and the lessor must qualify as a supplier as defined in theCPA. The issue that will be focused on is whether a lessor of residential premises qualifies as a supplier under [...]

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