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Section 24J, read with Section 11(x), of the Income Tax Act No 58 of 1962 (“ITA”) permits a deduction against a taxpayer’s income of any ...

Family-owned businesses play a significant role in South Africa’s economy. Alarmingly, surveys indicate that only about 30% (thirty percent) of family-owned businesses survive into the second generation, and 10% (ten percent) in respect of the third generation. These numbers reflect the failure of the seamless transfer of control and ownership to the following generation in the absence of a family constitution and succession structures.

In this fifth article unpacking the amendments relating to the first and Second Companies Amendments Acts of 2024; we deal exclusively with the amended provisions of Section 16 of the Companies Act, Act 71 of 2008 (the “Act”) and the effect it will have on companies, going forward.

The Johannesburg High Court’s recent judgment involving former Dimension Data executives, reinforces the importance of directors fulfilling their fiduciary duties with transparency and integrity.

Taxpayers often engage in financial arrangements when obtaining or granting loan or debt funding. Under these arrangements, the lender normally advances an amount to the borrower who is obliged to repay the amount advanced together with interest thereon.

This third article in the series uncovering the amendments relating to the First and Second Companies Amendment Acts, we wish to draw attention to private companies with multiple shareholders.

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.