Breaking down the new beneficial ownership reporting requirements for trusts
The Amendment Act has introduced new trustee obligations into the existing South African trust law. The changes pertain to the recording and reporting of beneficial ownership of trusts. The aim of this recording is to improve transparency regarding the ownership of trust assets to assist in the combatting of a money laundering and terrorist financing.
Acting without authority: What you need to know before acting as a trustee.
It is vital that a trustee is authorised by the Master before they exercise or undertake any trustee powers or duties. If this is not adhered to, these unauthorised acts are void and of no legal effect. This can place the trust, its beneficiaries and even the trustees themselves, depending on the circumstances, in a precarious position which could have financial or other adverse consequences.
Attention Entrepreneur : Venture Capitalism
You’re a starry-eyed entrepreneur or business owner with big dreams, intriguing ideas and promising growth prospects. You’ve got the potential, but you need the funding. In that case, it’s time to hook a venture capitalist or two. Before you move into the market and start networking, you need to consider things carefully and ensure that more...
Greylisting or Grey Hairs : new company disclosure requirements deadline 1 October 2023
Analysing the new disclosure requirements in the General Laws Amendment Act, 2022 In response to the greylisting by the Financial Action Task Force, the President has signed into law the General Laws (Anti-Money Laundering and Combating Terrorism Financing) Amendment Act to improve SA’s ability to combat money laundering and terrorist financing The Amendment Act has more...
More transparency or more trouble? A look at the Companies Amendment Bill, 2021
If passed, the Companies Amendment Bill will be the first substantive amendment to the Companies Act since it came into force in 2011. The Bill includes a contentious requirement for large companies to disclose their executive remuneration policy to the shareholders for approval including a ratio comparing the compensation of the highest-earning employees with that more...
Electronic signature of sale of immovable property agreements – what’s new?
If you asked a year ago whether you could sign a sale of immovable property agreement electronically, the short answer would have been that an electronically signed agreement of sale is not valid or binding on the parties. With the swift advances in technology, and more people than ever working remotely, there has been a more...
A step-by-step guide to having your documents commissioned
“Please, go back to the commissioner of oaths and repeat the process – you skipped a page!” – do these words sound familiar? Having documents commissioned should be a relatively simple task. In practice, however, minor mistakes, like a missed initial, can undermine the integrity of the entire process. Unfortunately, this is often only cured more...
Judicial redress in contracts: a balancing act
On 5 November 2019, Beadica 231 CC and Others v Trustees for the time being of Oregon Trust and Others (CCT109/2019) was before the Constitutional Court. This case made its way up, starting in the Western Cape High Court, then to the Supreme Court of Appeal (“SCA”), and finally, to the Constitutional Court. The judgment more...
Liquidations: Compulsory and Voluntary
A company can be liquidated regardless of whether it is solvent or insolvent. If a company is insolvent, it is unable to satisfy its debts as and when they come due (this is referred to as commercial insolvency). If the company is solvent, it has the option of being liquidated for reasons other than that more...
A summary on the legality of Electronic Debit Orders
We are all accustomed to using debit orders for various reasons, for example: Netflix fees, gym memberships, internet monthly usage and store credit accounts. It is important to consider whether the instructions we provide for these debit orders electronically are legal, valid and enforceable by the merchants and banks. In essence, a debit order is more...
Pre-Emptive Rights and Sale of Shares Provisions for Shareholders
A private company registered in accordance with the Companies Act 71 of 2008 ('the Act') must restrict the transferability of its securities. This is required in section 8(2)(b)(ii)(bb) of the Act. A standard MOI (part of the set of documents issued by CIPC upon a company being formed) may not however suit your requirements and more...
COVID-19 and Business Rescue: Where to start?
The lockdown and subsequent alert level restrictions brought on by by the covid-19 pandemic and Minister of Cooperative Governance and Traditional Affairs, Dr Nkosazana Dlamini Zuma’s regulations in terms of Section 27(2) of the Disaster Management Act, hindered and restrained the trading and operation of business entities across South Africa. While the regulations have been more...