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REIT regime – now extended to new exchanges
5 June 2019 Corporate & Commercial

REIT regime – now extended to new exchanges

The South African Real Estate Investment Trust (REIT) structure is a listed property investment vehicle, similar to internationally recognised REIT structures, where a tax dispensation ensures a flow through of net property income to investors. A REIT is essentially a company that owns and operates income-producing immovable property.

Escape route: “Resignation with immediate effect”
3 June 2019 Employment

Escape route: “Resignation with immediate effect”

The latest case in the ‘disciplining employees who have resigned with immediate effect’ saga has brought about more uncertainty as to whether an employee who resigns with immediate effect shortly before a disciplinary hearing can avoid disciplinary action and subsequent dismissal. In Tristyn Naidoo and Sedayshum Naidu v Standard Bank SA Ltd and SBG Securities (Pty) Ltd (Case No: J1177/190 [Delivered 24 May 2019], the Labour Court ruled that an employer has no power to discipline employees who have been charged with acts of misconduct and dishonesty but who have resigned with immediate effect before the date of their disciplinary hearings. The correct way to proceed, according to the court, is to hold the employee to his or her contract by seeking an order for specific performance.

South Africa’s rising unemployment tide: An alternative model
3 June 2019 Employment

South Africa’s rising unemployment tide: An alternative model

According to the most recent figures released by Stats SA, the unemployment rate rose to 27.6% in the first quarter of 2019, up from 27.1% in the previous period. This is the highest jobless rate recorded since Q3 2017, as the number of unemployed went up by 62,000, to 6.2 million, and the number of jobs fell by 237,000 to 16.29 million. These distressing statistics are indicative of the inadequacies of the current labour model in combatting the ever-present battle against unemployment.

Surety by a spouse married in community of property –  Do I have to consent?
29 May 2019 Dispute Resolution

Surety by a spouse married in community of property – Do I have to consent?

Under the Roman Dutch common law, marriages were ordinarily in community of property and the husband was vested with the marital power. This caused the husband to deal with all the assets of the joint estate to the exclusion and without the consent of his wife. The marital power of a husband was abolished by the Matrimonial Property Act, No 88 of 1984 (Matrimonial Act

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Enforcing South African judgments in two key jurisdictions: England and the US
22 May 2019 Dispute Resolution

Enforcing South African judgments in two key jurisdictions: England and the US

Favourable judgment in hand, South African litigants would be forgiven for thinking their victory is all but won. Those looking to execute rulings against foreign opposing parties may, however, still have some way to go. If an opposing party has no executable property and no other presence in South Africa, successful parties may have to cross borders to recover their dues. Each country greets foreign judgments with its own set of rules. This article discusses the processes and difficulties of enforcing South African judgments in two key jurisdictions: England and the US.

Duty of directors to act with a proper purpose
22 May 2019 Corporate & Commercial

Duty of directors to act with a proper purpose

In CDH Invest NV v Petrotank South Africa (Pty) Ltd & Others (483/2018) [2019] ZASCA 53 (1 April 2019), the Supreme Court of Appeal (SCA) held that a round robin resolution approving a resolution to, amongst others, increase the number of authorised shares in Petrotank South Africa (Pty) Ltd (Petrotank) was invalid on the basis that the directors of Petrotank did not exercise their powers to increase Petrotank’s authorised shares for a proper purpose.

New Draft Margin Requirements for Non-Centrally Cleared OTC Derivative Transactions
20 May 2019 Finance & Banking

New Draft Margin Requirements for Non-Centrally Cleared OTC Derivative Transactions

An updated version of the Draft Margin Requirements for Non-Centrally Cleared Over-the-Counter Derivative Transactions (Margin Requirements) was recently published as a Joint Standard by the Financial Sector Conduct Authority (FSCA) and the Prudential Authority (PA). The previous draft of the Margin Requirements was published during August 2018. The public consultation process on that draft, and further discussions between the PA and the FSCA, has given rise to a somewhat improved draft, which has now been published for final public consideration and comments. It is set to take effect on 1 September 2019.

Looking abroad: Some possible insight into South Africa’s forthcoming gambling tax
17 May 2019 Tax & Exchange Control

Looking abroad: Some possible insight into South Africa’s forthcoming gambling tax

In the 2019 Budget Speech, the Minister of Finance announced that draft legislation pertaining to the long-awaited gambling tax would be published for public comment in 2019. We discussed this announcement in our Special Edition Budget Speech Alert of 20 February 2019. The draft legislation will possibly be published with the draft Taxation Laws Amendment Bill in the next few months, but while we wait for the release of the draft legislation, we take the opportunity to consider some of the issues that have arisen with gambling tax in foreign jurisdictions.

Increasing focus on environmental taxes in South Africa
17 May 2019 Tax & Exchange Control

Increasing focus on environmental taxes in South Africa

Climate change and global warming are issues that have long been debated. Predictions as far back as 1982 regarding increases in atmospheric carbon dioxide are proving true. While climate change and global warming are often seen as abstract issues, the impact on communities around the world is starting to become more prevalent. Closer to home for example, we have seen an increase in ever more severe tropical cyclones off the Mozambique channel and here in South Africa we are experiencing longer, more intense droughts.

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Further clarity on Venture Capital Companies
31 January 2018 Tax & Exchange Control

Further clarity on Venture Capital Companies

On 24 July 2017, the South African Revenue Service (SARS) released binding class ruling 057 (BCR 057) which deals with, inter alia, the eligibility of a partner in an en commandite partnership to claim a deduction in respect of venture capital shares acquired by the partnership.

Harmonising law crucial for economic growth in East Africa
31 January 2018 Mergers & Acquisitions

Harmonising law crucial for economic growth in East Africa

Over more than decade, a combination of globalisation, foreign investment and an increase in multinational co-corporations in Africa has resulted in the rise of cross border transactions taking place on the continent and the much needed foreign investment to fuel growth in Africa.

Cross-border mergers and acquisitions – Charting the regulatory landscape
31 January 2018 Mergers & Acquisitions

Cross-border mergers and acquisitions – Charting the regulatory landscape

Africa is poised for massive urbanisation which will contribute to the continent's economic development. Currently, the continent is experiencing a growth of the middle class and the private sector, which in turn have influenced Africa's economic growth and the implementation of structural and economic regulatory reforms. This article deals with the challenges of investing in Africa and what is required in order to establish an effective regulatory landscape that would facilitate unlocking the continents growth potential.

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