The precise mechanism, governing to whom and in what proportions shares in a private company should be sold when a shareholder is no longer going to hold shares, is important for all shareholders to be satisfied with. This could occur for any number of reasons, such as simply wishing no longer to be involved in the company, to death of a shareholder.
The devil is in the detail and a very short agreement which is light on the intricacies of the relationship between contracting parties can lead to costly litigation down the line if the relationship between the parties breaks down.
You have cleaned out the storeroom during lock down but have you looked at getting your company’s documents in order?
The financial and operational stress placed on many businesses as a result of the COVID-19 lockdown may inevitably result in restructure of ownership, whether voluntary or by agreement. If your business is a company or close corporation (also referred to as a "CC" of which there are still a number in existence, even though new CCs cannot be registered) you may be re-considering how your business needs to change in order to be sustainable in the future, or you may be looking at your business with renewed focus which may necessitate a change in ownership whether by the exit of shareholders (or members in the case of a CC) or the introduction of new ones.
A non-disclosure agreement signed before a formal legal agreement is entered into to govern the business relationship between parties (such as a supply of goods or services or licence agreement) should generally have only a very narrow scope.
In the financial planning world, it is often said that the best time to start saving is 10 years ago. The same can perhaps be said for when the best time is to draw up [...]
A question often asked, and understandably so, is what is the difference between a discounting transaction and an incidental credit transaction? On first glance at the definitions in the National Credit Act, 2005 (the “NCA”) they seem almost identical, but one needs to look at the nature of the transaction to differentiate between the two.
Before a credit provider takes any action against a consumer that is in arrears, a credit provider must ensure that it has satisfied the provisions of section 129, section 130 and section 168 (which deals [...]
Brief synopsis on what not to forget when considering a share buy-back in terms of the Companies Act, 2008
There are 4 main sections of the Companies Act, No. 71 of 2008 (the “Act”) that need to be taken into account (aside from sections 44 and 45 governing the provision of financial assistance) when [...]
You have decided to take out insurance against loss due to cyber-crime related activities. But what are your obligations to mitigate loss that may be incurred. Just as you may be required to have an [...]
Electronic contracts – what is the legal status of concluding a contract online or via email and is a person’s signature sufficient to satisfy the requirements of an electronic signature?
Concluding a contract online or by email by means of a data message or using an electronic signature can cause uncertainty in terms of whether the contract is legally enforceable. However, with the introduction of [...]