If members of a Company transact on behalf of a Company, the Company will be deemed to close the transaction and not its respective members. Due to Company's separate legal personality, the liability of a Company's members is therefore limited.
Contracting parties often enter into written agreements, including a cause that generally states that parties to the contract should behave honestly and fairly in their dealings with one another (i.e. the good faith clause). According to our law of contract, where persons enter into a legally enforceable contact, their rights and duties are defined by the agreement they sign.
Employees' rights are strongly enshrined in South African legislation.
In the case decided by the Supreme Court of Appeal, Pexmart CC and Others v H Mocke Construction (Pty) Ltd. 2019, the principles of unlawful competition were considered.
Enhanced recognition limited to effective black ownership.
Implementation of Section 7C entails that a person may (in certain instances) be liable for donation tax if such person provided a loan, advance or credit to a discretionary trust. This section was implemented to limit tax avoidance through estate duty and donations tax savings techniques in trusts.
Although not recorded in SA legislation, the Chief Master (Adv. LG Basson) in a directive of 6 March 2017 (the “Directive”), made it a requirement for all Masters offices across South Africa to consider the appointment of an independent trustee to the Board of Trustees of all new Family Business Trusts.
The sale and purchase of goodwill is primarily regarded in our tax law to be a transaction on capital account. The proceeds received by the seller will be capital in nature and may be subject to capital gains tax.
Tax and estate planning involve many interrelated and potentially complex issues for farmers operating their farming activities in own name.
Companies being desirous to amalgamate can execute same in terms of section 113 of the Companies Act 71 of 2008 (the “Companies Act”) or section 44 of the Income Tax Act 58 of 1962 (the “Tax Act”). Amalgamations in terms of the Tax Act are preferred as there are no adverse tax consequences, should the requirements of section 44 be met.
In terms of section 71 of the Companies Act (the “Act”), and despite anything to the contrary in a company’s Memorandum of Incorporation or rules, a director may be removed by way of an ordinary resolution of shareholders.
On the 20th of February 2019, the Minister of Finance, Tito Mboweni, delivered to Parliament the 2019 Budget speech. From a tax perspective, there are a number of tax legislative provisions to be reviewed. The endorsing legislation in respect of these tax provisions to be reviewed and proposals thereto will only be made available for public comment later this year.