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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.

Unemployment rate in South Africa
17 May 2019 Employment

Unemployment rate in South Africa

It was recently announced that South Africa's unemployment rate has increased to 27.6% in the first quarter of this year. Employment Director Hugo Pienaar joined eNews Channel Africa to discuss this.

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Investing abroad? The foreign investment allowance is at your disposal
10 May 2019 Tax & Exchange Control

Investing abroad? The foreign investment allowance is at your disposal

It is common nowadays for South African persons to diversify their investment portfolio and to invest in foreign jurisdictions. When doing so, South African residents must ensure that they transfer funds abroad in a manner that complies with South Africa’s exchange control rules. In our Tax & Exchange Control Alert of 6 October 2017, we explained how South African resident individuals can make use of their annual single discretionary allowance (SDA) of R1 million, to transfer and take funds abroad without the prior approval of the South African Reserve Bank (SARB) and without first having to obtain a tax clearance certificate.

Neighbouring building plans ruining your scenery? Constitutional Court rules that legitimate expectations of property owners should be considered
6 May 2019 Dispute Resolution

Neighbouring building plans ruining your scenery? Constitutional Court rules that legitimate expectations of property owners should be considered

On 19 February 2019, the Constitutional Court (CC) handed down its judgment in the consolidated matters of Trustees of the Simcha Trust v Da Cruz and Others and City of Cape Town v Da Cruz and Others (Simcha Trust) in which it had to decide whether there was an obligation on local authorities considering a building application, to apply the legitimate expectations test when considering whether the surrounding area where the building is to be erected would likely be disfigured or whether such a building would be unsightly or objectionable.

Those who allege may not need to prove: The “appropriate relief” exception
6 May 2019 Dispute Resolution

Those who allege may not need to prove: The “appropriate relief” exception

It is a general principle in our law that those who allege before a court that they are entitled to succeed in their claim bear the onus to prove their entitlement. In a recent case, the Supreme Court of Appeal, in awarding the Appellants “appropriate relief”, paid short shrift to this general principle, thereby creating a precedent that may have unintended consequences.

To dispose or not to dispose… that is not the only question
6 May 2019 Corporate & Commercial

To dispose or not to dispose… that is not the only question

Companies often find themselves entering into disposal transactions which are possibly subject to the provisions of s112 of the Companies Act, No 71 of 2008 (Act), whether by selling a division of its business, disposing of its shares in a subsidiary or even undertaking an internal restructure.

To be or not to be: In writing
6 May 2019

To be or not to be: In writing

In the recent case of NUMSA obo Nomanyane and another v Grupo Antolin (Pty) Ltd MICT28342, heard before the Metal Engineering Industry Bargaining Council (MEIBC), the Commissioner was tasked with determining whether a fixed-term contract of employment must be in writing or not.

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Interest paid to the non-resident beneficiary of a trust
22 February 2018 Tax & Exchange Control

Interest paid to the non-resident beneficiary of a trust

Section 50B of the Income Tax Act, No 58 of 1962 (Act) provides for the levying of a withholding tax on interest, calculated at the rate of 15% of the amount of any interest paid by any person to or for the benefit of any foreign person, to the extent that the amount is regarded as having been received or accrued from a source within South Africa.

What legal recourse is available to South African cybercrime victims?
5 February 2018 Technology, Media & Telecommunications

What legal recourse is available to South African cybercrime victims?

Following the largest data breach of private citizens in South Africa’s history, which saw the personal data of over 30 million people leaked online, South Africans are increasingly at risk of falling victim to identity theft, fraud, and other forms of cybercrime.

Relief for innocent property owners, but maybe not so much for innocent mortgagees.
5 February 2018 Real Estate

Relief for innocent property owners, but maybe not so much for innocent mortgagees.

There is cause for celebration for new property owners in light of the recent constitutional court judgment in Jordaan and Others vs City of Tshwane Metropolitan Municipality and Others [2017] ZACC 31, however new owners were not the only ones who stood to lose in the application and interpretation of Section 118(3). The question thus arises: where do mortgagees stand in respect of the section?

The right partnership can help investors flourish in Africa
5 February 2018 Finance & Banking

The right partnership can help investors flourish in Africa

Africa remains an attractive investment destination for investors looking to unlock maximum returns on their outlay. However, doing business in Africa requires a thorough understanding of the cultural, economic and political nuances that exist across the African continent. Failure to take into account each country's individual circumstances is likely to lead to challenges for any potential investor.

How low can we go?
5 February 2018 Environmental

How low can we go?

As the Western Cape’s rainy season draws to a close, and dam levels are at just above half of what they were at this time last year, the City of Cape Town has announced Level 5 water restrictions in an effort to ease the devastating situation. Despite these restrictions and various other methods of supplementing water supply that are currently being considered, the implementation of a large-scale, long-term solution will take time that the City no longer has.

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Water crisis in the Western Cape
28 November 2017 Environmental

Water crisis in the Western Cape

Director and National Head of our Environmental practice Terry Winstanley discusses water restrictions and regulations in the Western Cape.

Justice Madlanga addressed the learners on transformative constitutionalism
15 November 2017 Pro Bono & Human Rights

Justice Madlanga addressed the learners on transformative constitutionalism

Every year, hundreds of high school learners participate in the National Schools Moot Court Competition. The competition, which first began in 2011, is a joint initiative by the Department of Basic Education, the Department of Justice and Constitutional Development, the South African Human Rights Commission, the Foundation for Human Rights and the University of Pretoria. CDH has been heavily involved in the Competition since 2014, and on 4 October 2017, as part of an intensive few days programme for the national rounds, we hosted 74 learners participating in these rounds at a seminar held at our Sandton offices.

Former Constitutional Court Judge, jurist and struggle stalwart, Justice Zak Yacoob gave a stirring keynote address at the the I decide = I am exhibition
8 November 2017 Pro Bono & Human Rights

Former Constitutional Court Judge, jurist and struggle stalwart, Justice Zak Yacoob gave a stirring keynote address at the the I decide = I am exhibition

Former Constitutional Court Judge, jurist and struggle stalwart, Justice Zak Yacoob gave a stirring keynote address at the the I decide = I am exhibition. The cocktail event was held at our Sandton offices in partnership with the Centre for Human Rights. The exhibit was displayed during the month of October.

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Gender Parity in Private Equity
30 May 2018 Private Equity

Gender Parity in Private Equity

Directors in our Corporate and Commercial Practice, Nonhla Mchunu and Tessa Brewis, joined Cape Talk's Early Breakfast with Abongile Nzelenzele to discuss was "Gender Parity in Private Equity"