The purpose of BR in terms of the Act is thus to give ailing companies a chance to return to trading on a solvent basis or alternatively, to maximise the returns of the creditors and stakeholders of the company. This happens by restructuring the entity, under the control of a Business Rescue Practitioner (“BRP”) and subject to the approval and participation of its creditors.
When we have any documentation commissioned, we essentially swear, by providing proper identification, before someone who has the authority to administer an oath (such as a police official, an attorney, a charted accountant, etc.), that we understand the content of the documentation and find it binding on our conscience. The commissioner confirms this by placing his/her signature and stamp. Usually this is a process done face to face but with these unprecedented times of living in lockdown and trying to reduce the spread of infection, it may be wise to consider alternative means of commissioning.
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.
Irrespective that this judgement deals with a transaction between group companies that is now specifically provided for by Section 22(3A) of the VAT Act, it remains that the principles may be applied to transactions between non-group companies or other parties that enter into these types of transactions, or make payments of consideration, on loan account.
Disputes over ownership of software often cross my desk. The story is almost invariably the same: someone has paid a software developer to write code, and there is no written agreement dealing with who owns that code. Then the developer decides that he owns the code and won’t hand over the source code.
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.
On Thursday, 26 March 2020, the Minister for Employment and Labour, Thembelani Nxesi, issued a Directive entitled ‘Covid- l9 Temporary Employee/Employer Relief Scheme, 2020’ to the general public (the “Directive”). The underlying rationale for the issuing of the Directive is founded on the immense impact the President’s declaration of a national lockdown, and the Regulations imposed in terms of section 27(3) of the Disaster Management Act, have had on the continued trading and commercial viability of especially small to medium enterprises and those entities whose businesses operations are considered to be ‘non-essential’.
During the current COVID-19 crisis, many employers will have chosen to allow their employees to work from home. While most employers already have a communications policy that regulates how employees use communications infrastructure in the workplace, it is important to bear a few points in mind when many or most employees are working remotely.
Following the outbreak of the COVID-19 virus and the announcement of a national disaster in terms of the Disaster Management Act 57 of 2002 (“the Act”), South Africans face a time of great uncertainty. We are confronted with situations in our daily lives which most of us have never encountered.