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Youth empowering youth – our visit to Just Grace
15 July 2019 Pro Bono & Human Rights

Youth empowering youth – our visit to Just Grace

In honour of youth month, the Cape Town Pro Bono & Human Rights Practice (Pro Bono Practice) partnered with Just Grace to roll out two meaningful initiatives aimed at supporting and empowering the youth.

CDH hosts SECTION27’s Annual Corporate Cocktail Event
15 July 2019 Pro Bono & Human Rights

CDH hosts SECTION27’s Annual Corporate Cocktail Event

It is often said that the ultimate price of greatness is responsibility, and one could argue that this also applies to corporations and organisations. The best corporations don’t walk away from their social responsibilities: they embrace them and invest in local communities by, amongst other things, collaborating with and supporting organisations and NGOs whose essential service to our society ensure that authorities act in the public’s best interests. This is one of the many reasons why hosting the SECTION27 Annual Fundraising Cocktail Evening which took place at our Sandton office on 27 June was important.

Violence and harassment in the workplace: The latest from the ILO
15 July 2019 Employment

Violence and harassment in the workplace: The latest from the ILO

On 21 June 2019, the International Labour Conference (ILO) in Geneva, adopted a new Convention and Recommendation titled the “Convention Concerning the Elimination of Violence and Harassment in the World of Work” (the Convention) which seeks to combat and eradicate workplace violence and sexual harassment alongside other workplace issues.

Stories from Down Under: Income tax provisions applicable to documentaries
11 July 2019 Tax & Exchange Control

Stories from Down Under: Income tax provisions applicable to documentaries

When South Africans think about Australian television, many may remember the television soap opera, Neighbours, featuring the famous Kylie Minogue, which aired in South Africa during the 1990s. Whereas South African tax law contains an income tax incentive for qualifying films and documentaries in s12O of the Income Tax Act, No 58 of 1962 (Act), effective from 1 January 2012. Australian tax law also contains specific provisions that apply to qualifying documentaries. We discussed the provisions of s12O of the Act in our Tax and Exchange Control Alert of 8 September 2017.

Double trouble: The limited application of the in duplum rule
10 July 2019 Corporate & Commercial

Double trouble: The limited application of the in duplum rule

Literally translated, “in duplum” means “double the amount”. The in duplum rule prevents arrear interest accumulating beyond an amount equal to the outstanding capital obligation. Such interest ceases to accrue once the sum of the unpaid (accrued) interest equals the amount of the outstanding capital, whether or not any capital and/or interest is payable at the time, thereby limiting the debtor’s aggregate liability to double the capital amount. The rule is concerned with public interest and protects borrowers from exploitation by lenders who permit interest to accumulate.

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Creditors v fraudsters – the gloves come off
3 July 2019 Dispute Resolution

Creditors v fraudsters – the gloves come off

It was Nassim Nicholas Taleb who said, “If you see fraud and do not say fraud, you are a fraud”. In the case of the National Credit Regulator v Southern African Fraud Prevention Services NPC (560/2018) [2019] ZASCA 92 (3 June 2019) the overarching question that had to be resolved by the Supreme Court of Appeal (SCA) is for how long the Southern African Fraud Prevention Services NPC (SAFPS)’s obligation to cry ‘fraud!’ persists.

Warning: Defendants may lose their homes for failure to comply with rules 46 and 46a at summary judgment stage
3 July 2019 Dispute Resolution

Warning: Defendants may lose their homes for failure to comply with rules 46 and 46a at summary judgment stage

Summary judgment is a mechanism utilised by plaintiffs in action proceedings when it is believed that the defendant does not have a bona fide defence to the plaintiff’s claim and has simply entered an appearance to defend in order to delay the matter. Essentially, it prevents the abuse of the court process by the defendant. On 6 June 2019, the Supreme Court of Appeal (SCA) in the case of NPGS Protection and Security Services CC and Another v FirstRand Bank Ltd (314/2018) [2019] ZASCA 94 had to consider the relationship between summary judgment applications and the requirements established in the Uniform Rules of Court relating to foreclosures on primary residences.

Better late than never? Potential consequences of the failure to submit a section 60 written resolution to all shareholders simultaneously
3 July 2019 The Companies Act

Better late than never? Potential consequences of the failure to submit a section 60 written resolution to all shareholders simultaneously

In terms of s60 of the Companies Act, No 71 of 2008, shareholders may, instead of holding a formal meeting, consent in writing to decisions which could be voted on at a shareholders’ meeting. Although s60 presents a practical way for shareholders to pass resolutions, there are important principles not immediately apparent from the language of s60 that should not be overlooked.

Tightening up on tacit terms
3 July 2019 Corporate & Commercial

Tightening up on tacit terms

The courts have recently reaffirmed the restrictive scope of reading tacit terms into written contracts. A notable example of this is the Supreme Court of Appeal’s judgment in Adhu Investments CC and Others v Padayachee (1410/2016) [2019] ZASCA 63, where Hugo Heinrich Knoetze (Knoetze), Kumaran Padayachee (Padayachee) and others had agreed to embark on a “lucrative” business transaction (Transaction) but, as business sometimes goes, the agreement fell through and the parties prepared an exit agreement. However, Knoetze had, prior to the signature of the exit agreement, set up a separate structure which resulted in a similar outcome as the Transaction, sans the other parties.

AI Regulation in South Africa and the global regulatory trends
1 July 2019 Technology, Media & Telecommunications

AI Regulation in South Africa and the global regulatory trends

In many industries in South Africa, there has been a massive drive towards incorporating artificial intelligence (AI) and machine learning into business and products to streamline operations, analyse user behaviour and determine or predict potential purchasing. However, as technology advances at a rapid pace policymakers and laws have struggled to keep up. This article is part of a series intended to set-out the laws around AI and highlight some of the more interesting questions and legal concerns around AI regulation.

Delayed visa and permit applications: When your application gets ‘lost in the system’
1 July 2019 Employment

Delayed visa and permit applications: When your application gets ‘lost in the system’

In the case of Director-General of the Department of Home Affairs and Others v De Saude Attorneys and Another [2019] 2 All SA 665 (SCA) (29 March 2019), the Supreme Court of Appeal (SCA) dismissed an application by the Department of Home Affairs (the Department) to appeal an order by the Western Cape Division of the High Court, Cape Town wherein the court compelled the Department to process applications and appeals within the structure of the Immigration Act, No 13 of 2002 and the South African Citizenship Act, No 88 of 1995 after prolonged delays.

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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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CDH recognised as leading firm by DealMakers in 2017
25 April 2018 Corporate & Commercial

CDH recognised as leading firm by DealMakers in 2017

Cliffe Dekker Hofmeyr (CDH) has been recognised by DealMakers as the local law firm that has consistently advised on the most number of M&A deals in South Africa. The firm clinched the prestigious M&A Deal Flow award for the ninth consecutive year – with deals totalling R119,576 billion in value – at the annual DealMakers Awards. CDH was awarded second place in the M&A Deal Value category. The firm also achieved notable M&A Deal Flow and Deal Value rankings in the BEE and Africa categories. Watch our latest TV advert.

The future of BEE in South Africa
4 April 2018 Corporate & Commercial

The future of BEE in South Africa

Corporate & Commercial Directors Verushca Pillay and Allan Hannie share their thoughts on the pitfalls and the future of BEE in South Africa.

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