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The Business Laws (Amendment) (No. 2) Act, 2021 (the Act) which came into force on 30 March 2021, makes amendments to various statutes to facilitate the ease of doing business in Kenya, including the Law of Contract Act, the Companies Act and the Insolvency Act. We consider below some of the amendments introduced by the Act.
Pre-emptive rights in respect of shares in private companies are a notoriously thorny matter and often give rise to contentious issues and disputes between shareholders. One such issue is the legality and effect of combining or stapling (Stapling) assets to shares that are subject to a right of pre-emption. This is often referred to as a “Package Deal”.
South Africa’s reality as a water scarce country is a well-known fact, with water scarcity being exacerbated by poor water resource management and licensing, lacking water infrastructure, insufficient maintenance and investment, and, without question, climate change. Climate change and its impact on water is linked not only to increasing and more severe periods of drought, but also erratic and severe weather patterns which have a knock-on effect on water availability. Given the extensive water needs of produce farmers, the agricultural sector is and will be one of the hardest hit by the effects of climate change.
Many of us have followed the saga for several years now: Allegations that our former president, Jacob Gedleyihlekisa Zuma (Mr Zuma), unlawfully made use of state funds to fund the private law firm and advocates representing him in his personal capacity in defending his ongoing corruption proceedings. In 2019, the Gauteng Division of the High Court, Pretoria (the High Court) found that these were not just mere allegations and ordered Mr Zuma to “pay back the money” (something we’ve heard before). But that would not be the end of the matter. Mr Zuma took the High Court’s decision on appeal to the Supreme Court of Appeal (SCA), raising three grounds of appeal. The SCA’s scathing judgment dismissing this appeal was handed down on 13 April 2021, and it laid bare some disconcerting facts.
In the recent case of Govan Mbeki Municipality v New Integrated Credit Solutions (Pty) Ltd (121/2020) [2021] ZASCA 34 (7 April 2021), the SCA bemoaned the “ever-growing, and frankly disturbing long line of cases” wherein municipalities and organs of state seek to have the decisions underlying contracts with service providers set aside for want of legality when, more often than not, the contracts have run their course and services have been rendered.
The disbandment of the SADC Tribunal has resulted in the South African government being sued for billions of Rands in its domestic courts by several plaintiffs. The trigger point for these lawsuits was the 2018 Constitutional Court judgment, Law Society of South Africa and Others v President of the Republic of South Africa and Others 2019 (3) SA 30 (CC) where the court held that South Africa’s participation in the disbandment of the SADC Tribunal was unconstitutional.
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The Business Laws (Amendment) (No. 2) Act, 2021 (the Act) which came into force on 30 March 2021, makes amendments to various statutes to facilitate the ease of doing business in Kenya, including the Law of Contract Act, the Companies Act and the Insolvency Act. We consider below some of the amendments introduced by the Act.
Pre-emptive rights in respect of shares in private companies are a notoriously thorny matter and often give rise to contentious issues and disputes between shareholders. One such issue is the legality and effect of combining or stapling (Stapling) assets to shares that are subject to a right of pre-emption. This is often referred to as a “Package Deal”.
South Africa’s reality as a water scarce country is a well-known fact, with water scarcity being exacerbated by poor water resource management and licensing, lacking water infrastructure, insufficient maintenance and investment, and, without question, climate change. Climate change and its impact on water is linked not only to increasing and more severe periods of drought, but also erratic and severe weather patterns which have a knock-on effect on water availability. Given the extensive water needs of produce farmers, the agricultural sector is and will be one of the hardest hit by the effects of climate change.
Many of us have followed the saga for several years now: Allegations that our former president, Jacob Gedleyihlekisa Zuma (Mr Zuma), unlawfully made use of state funds to fund the private law firm and advocates representing him in his personal capacity in defending his ongoing corruption proceedings. In 2019, the Gauteng Division of the High Court, Pretoria (the High Court) found that these were not just mere allegations and ordered Mr Zuma to “pay back the money” (something we’ve heard before). But that would not be the end of the matter. Mr Zuma took the High Court’s decision on appeal to the Supreme Court of Appeal (SCA), raising three grounds of appeal. The SCA’s scathing judgment dismissing this appeal was handed down on 13 April 2021, and it laid bare some disconcerting facts.
In the recent case of Govan Mbeki Municipality v New Integrated Credit Solutions (Pty) Ltd (121/2020) [2021] ZASCA 34 (7 April 2021), the SCA bemoaned the “ever-growing, and frankly disturbing long line of cases” wherein municipalities and organs of state seek to have the decisions underlying contracts with service providers set aside for want of legality when, more often than not, the contracts have run their course and services have been rendered.
The disbandment of the SADC Tribunal has resulted in the South African government being sued for billions of Rands in its domestic courts by several plaintiffs. The trigger point for these lawsuits was the 2018 Constitutional Court judgment, Law Society of South Africa and Others v President of the Republic of South Africa and Others 2019 (3) SA 30 (CC) where the court held that South Africa’s participation in the disbandment of the SADC Tribunal was unconstitutional.
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Following the publication of a similar list in December 2020, the Kenyan Trade Marks Registrar has now published a list of 2496 trademark registrations.
The Ministry of Petroleum and Mining issued a public notice on 14th February 2021.
Kenya Managing Partner, Sammy Ndolo ranked in Chambers Global 2021.
Widely reported last week is a plan by the Treasury to set up an Unemployment Insurance Fund (UIF), in order to assist the unemployed as a result of the COVID-19 pandemic. As reported, the plan seems rather simple; a 1% tax will be levied on employees and employers alike in order to fund the UIF and offer a monthly stipend to the unemployed, or those unable to work due to illness.
Partner Desmond Odhiambo and Associate Peter Mutema recently contributed to the 2020 edition of Getting The Deal Through - Labour and Employment.
The duty of a director is owed to the company. However, if a company is in financial difficulties this duty is owed to the company’s creditors so as to minimise the loss to creditors.
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Partner Shem Otanga discusses Kenya’s Data Protection Act, 2019.
Kylene Weyers, Senior Associate in the Business Rescue, Restructuring and Insolvency sector, joined Newzroom Afrika to discuss how the tourism industry has been battling to deal with the effects from COVID-19 and what business rescue as a mechanism can offer the tourism sector at this time.
South Africa's first batch of vaccines were delivered this week. While the distribution is being seen as key to the ending the pandemic, on Monday night President Cyril Ramaphosa confirmed that government had no intention making COVID-19 vaccination mandatory. Employment Law Director Phetheni Nkuna joined Newzroom Afrika's News @ Prime to unpack the intricacies around the legislative landscape and the question of vaccinations in the workplace.
Hugo Pienaar, Director in the Employment Law practice featured on an eNCA interview discussing the vaccinations policy in the workplace and the ten legal principles that should be considered when deciding to create or implement such a policy.
Employment Law Director Imraan Mahomed joined eNews Channel Africa's Live at Lunchtime with Jeremy Maggs to discuss whether South African employers can impose mandatory COVID-19 vaccination policies as a pre-requisite to return to work or as a precondition for employment.
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Employment Law Director Jose Jorge joined Lunch with Pippa Hudson on Cape Talk for a discussion around registering your domestic worker for COIDA. In it, he looks at how to ensure you properly register your domestic worker or gardener for the compensation fund, and explains the obligations around the recent ruling.
Dispute Resolution Director Corne Lewis joined 'The Honest Truth' with Benito Vergotine on Smile FM to take a look at when you should you report fraud, and when the decision to report fraud could put you in legal danger.
Gillian Lumb, Director in the Employment Law practice joined Cape Talk to discuss some of the serious legal ramifications that can't be ignored when working from home during COVID-19. She mentions that an employer can take disciplinary action against an employee even when working in the privacy of their own home.
On this month’s podcast, Partner Njeri Wagacha, in our Kenyan office, speaks to our CEO Brent Williams on his career, CDH, and the alliance that CDH has created with Kieti Law LLP.
Employment Law Director Bongani Masuku recently joined Channel Africa to take a look at whether or not employees can be disciplined for conduct outside of the workplace that involves recklessly exposing themselves to COVID-19
Hedda Schensema, Director in the Employment Law practice joined Cape Talk to discuss if employers can discipline employees for conduct outside of the workplace, that involves recklessly exposing themselves to COVID-19.
