Latest News

Get insight into the most recent legal developments across key industry sectors.

subscribe to updates

Loading...

How not to resolve a conflict of interests where the entire board of directors is conflicted
18 September 2019 Corporate & Commercial

How not to resolve a conflict of interests where the entire board of directors is conflicted

A persistent problem with the practical application of s75 of the Companies Act, No 71 of 2008 (Companies Act) relates to the conflicts of interest of common directors in the context of intra-group transactions. The objective of this article is not to cover any new ground with respect to s75, but rather to critique the argument that s75(2)(a)(i)(ii) excludes the application of s75 in such cases.

Carbon tax – new legislation already changing but what about the regulations?
13 September 2019 Tax & Exchange Control

Carbon tax – new legislation already changing but what about the regulations?

The Carbon Tax Act, No 15 of 2019 (Act) came into effect on 1 June 2019. Simply put, carbon tax is imposed on the carbon dioxide (CO2) equivalent of greenhouse gas emissions where certain thresholds are exceeded and is intended to encourage the reduction of greenhouse gas (GHG) emissions in South Africa and to ensure that South Africa meets its commitments under the Paris Agreement.

Can the real bidder please stand up: Fronting under the Broad Based Black Economic Empowerment Act
11 September 2019 Dispute Resolution

Can the real bidder please stand up: Fronting under the Broad Based Black Economic Empowerment Act

South Africa’s first democratic government set out to redress the gross inequalities of the past. Parliament, in 2003, enacted the Broad Based Black Economic Empowerment Act, No 53 of 2003 (Act). The fundamental objective of the Act is to advance economic transformation and enhance the economic participation of black people in the South African economy.

Constitutional damages and grief – the SCA will soon say
11 September 2019 Dispute Resolution

Constitutional damages and grief – the SCA will soon say

The issue of constitutional damages was first raised in Fose v Minister of Safety and Security 1997 (3) SA 786 (CC), when the Constitutional Court held that there was, in principle, no reason why an award of damages could not be made to protect constitutional rights, where damages would constitute “appropriate relief” considering the circumstances and the particular right infringed.

Loading...

Disruptive technology and its impact on the M&A landscape
4 September 2019 Corporate & Commercial

Disruptive technology and its impact on the M&A landscape

If a decade ago someone had told you that you’d be comfortable sharing your location with a stranger, hop into that stranger’s car and trust them to take you where you wanted to go, you would’ve probably scoffed. Fast-forward to present day and most of us use Uber without any qualms. The taxi and rental-car markets aren’t the only industries that have gone undergone an overhaul. Disruptive technologies such as artificial intelligence, augmented and virtual reality, blockchain, and 3D printing are rapidly changing our economy and the status quo, forcing companies to change their business approach for fear of losing their market share or becoming irrelevant.

Decriminalise your disciplinary hearings even further
2 September 2019 Employment

Decriminalise your disciplinary hearings even further

An employee of the Department of Social Development was sentenced to direct imprisonment for charges of bribery and corruption for four years. Upon release, his employer issued him with a written notice of termination due to incapacity. At the arbitration proceedings, the arbitrator found the employee’s dismissal procedurally unfair, awarding him three months’ compensation. The employee took the award on review, contending that his dismissal was also substantively unfair.

Sharing is caring - ruling on disposal and acquisition of shares by a PBO
30 August 2019 Tax & Exchange Control

Sharing is caring - ruling on disposal and acquisition of shares by a PBO

The Income Tax Act, No 58 of 1962 (Act) states that where a non-profit company, trust or association of persons meets certain requirements in the Act, it can be approved by SARS as a public benefit organisation (PBO), which enjoys certain tax benefits. To obtain approval a PBO is required, amongst other things, to carry on public benefit activities (PBAs) with a philanthropic intent and in a non-profit manner. However, it may happen that a PBO has excess funds that it would like to invest to earn interest, for example, which interest it would then also use to carry on public benefit activities.

The effect of not accepting a board’s offer during the appraisal process
28 August 2019 Corporate & Commercial

The effect of not accepting a board’s offer during the appraisal process

One of the most important statements that must be included in a notice to shareholders when a company proposes a fundamental transaction is the statement of the shareholders’ appraisal rights in terms of s164 of the Companies Act, No 71 of 2008 (Companies Act). Briefly, s164 states that in the event of the proposal of a fundamental transaction or an amendment of the company’s memorandum of incorporation that involves a materially adverse alteration to the rights of a class of shareholders, a dissenting shareholder may demand that the company pay that shareholder the fair value of all of its shares. Our courts are increasingly called upon to adjudicate appraisal rights matters, and this case had to assess the position of a dissenting shareholder when it does not act on an offer for fair value from the company.

Electricity supply cannot be restored by way of a mandament van spolie
28 August 2019 Dispute Resolution

Electricity supply cannot be restored by way of a mandament van spolie

Spoliation refers to the unlawful deprivation of a party’s right of possession. The remedy for such deprivation is a spoliation order or, by another name, the mandament van spolie. When it comes to the dispossession of a party’s right of possession of movable or immovable property, South Africa’s law on spoliation orders is long settled. It has been established in recent judgments that the remedy can also be extended to certain incorporeal rights, which relate to intangible property. In this regard our courts have recently had to grapple with the following question: Can a party that owns or is in possession of an immovable property rely on a spoliation order when another party disconnects the supply of electricity or water?

Loading...

Cliffe Dekker Hofmeyr intends to approach the Labour Court regarding ruling on the deeming provision
3 July 2015 Employment

Cliffe Dekker Hofmeyr intends to approach the Labour Court regarding ruling on the deeming provision

Cliffe Dekker Hofmeyr's employment lawyers will approach the South African Labour Court to review a decision made by the National Bargaining Council for the Road Freight and Logistics Industry (NBCRFLI) on the 26th of June 2015. The decision concerns the two approaches taken when determining the employment relationship of employees of Temporary Employment Services.

Burglar bars for data
2 July 2015 Technology, Media & Telecommunications

Burglar bars for data

Cyber-espionage is on the rise, with increasing amounts of state secrets and intellectual property being stolen by hackers. Cyber-criminals are phishing banking details and are able to empty bank accounts. As a result of these cyber-security breaches, personal information can be intercepted and shared without consent.

The Ins and Outs of Outsourcing
30 June 2015 Outsourcing

The Ins and Outs of Outsourcing

According to a recent Outsourcing and Insourcing Report compiled by Deloittes, the trend towards IT outsourcing is increasing, with clients looking to optimize vendor relationships and improve operational efficiency.

California Uber driver ruled to be an employee
19 June 2015 Employment

California Uber driver ruled to be an employee

The California Labor Commission recently ruled that an Uber driver, Barbara Ann Berwick, was indeed an employee and not an independent contractor. This ruling was reached against the backdrop of a class action suit against Uber (and its competitor Lyft) by drivers who want to be classified as employees and not as independent contractors.

Loading...

Nicholas Preston comments on Shakes Mashaba and Isegund Gordan having a contract at the same time.
6 August 2014 Employment

Nicholas Preston comments on Shakes Mashaba and Isegund Gordan having a contract at the same time.

Newly appointed Bafana Bafana coach Shakes Mashaba arrives back in South Africa after a tour of Mali as the official coach of the senior national team. Isegund Gordan’s contract with SAFA runs until the end of the month, but a employment lawyer says this is perfectly legal that both men can be contracted for the same position at the same time. Director, Nicholas Preston gives comment.

Loading...