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As mentioned in our July 2024 article, the First and Second Companies Amendment Bills were signed into law on 26 July 2024, marking a significant shift in regulatory requirements, though they are not yet in effect. As these changes take effect, we will continue to provide insights into the amendments to the Companies Act 71 of 2008 (the “Act”).

On 26 July 2024, the First and Second Companies Amendment Bills were signed into law, however, is not in effect at this stage. The long awaited Amendment Bills brought significant shift in regulatory requirements. As these changes take effect, we’ll be publishing a series of articles dissecting the amendments to the Companies Act 71 of 2008 (the “Act”).

In South African contract law, the principle of exception non adimpleti contractus allows a party in a reciprocal contract to withhold their performance if the other party fails to fulfil their obligations, even where the contract does not make specific provision therefore. Stated differently, a party can withhold payment for services until the services are rendered.

Government has announced temporary incentives for residential and business solar PV installations to help improve South Africa’s energy generation, these incentives are found in Section 6C and 12BA of the Income Tax Act (“ITA”). It is important to distinguish between:

In South African contract law, understanding the intricacies of termination and repudiation of contracts is crucial for anyone engaged in contractual agreements. These legal concepts, supported by significant case law, determine how parties can effectively handle breaches and the consequences that follow. Knowing the procedures and legal grounds for terminating a contract lawfully or responding to the repudiation of a contract can curtail costly litigation.

Section 163 of the Companies Act 71 of 2008 (the “Act”) provides a crucial mechanism for minority shareholders and directors to seek relief from acts or omissions by a company or related persons that are oppressive, unfairly prejudicial, or unfairly disregard their interests. This section aims to safeguard minority shareholders who may be adversely affected by decisions made by the majority shareholders.

In the context of South Africa's abundant agricultural potential, investing in agricultural land holds considerable opportunity. The prosperity of such an investment, however, significantly relies on a legal due diligence process. It is imperative not only to identify potential risks but, also to navigate and address risks effectively, ensuring a seamless acquisition process.

National Treasury introduced a Solar Panel Tax Incentive for individuals during the 2023 budget speech. The incentive was introduced to encourage households to invest in clean electricity generation capacity that can supplement Eskom’s supply and will only be available for a limited time.

The latest agricultural permit regulations for exports to the European and UK markets were gazetted (the “Regulations”) on 1 November 2023. There were numerous sensational interpretations that lead to confusion in the agricultural market, specifically relating to the BEE status of an applicant applying for an export permit.

It is common practice for companies to enter into exclusivity agreements with their customers in relation to products or services. It is, however, important to take cognisance of the provisions of the Competition Act 89 of 1998 (as amended) (the “Competition Act”) in relation thereto.

During 2021 the Financial Action Task Force (the “FATF”) published a report outlining South Africa’s shortcomings in relation to the prevention of money laundering, terrorist financing and proliferation financing, which ultimately lead to our country’s greylisting.

Section 42 of the Income Tax Act (“ITA”) permits a person (“Transferor”) to transfer an asset to a company (“Transferee”) in return for equity shares. Ordinarily, section 42 allows for the transaction to be implemented on a tax neutral basis, where there will be no capital gain tax (“CGT”) as a result.