Section 66(1) of the Companies Act, No. 71 of 2008 (“the Act”) provides that the board of directors is responsible for the management of the business and affairs of a company. Section 66 further provides that at least 50% of directors of a profit company must be elected by the shareholders. The other 50% can …
Hiring and Firing Directors: Be mindful of the traps Read More »
Remember that your claim against a debtor can lapse after a certain period of time. This happens in terms of the legal rules on extinctive prescription. What is Prescription? The effect of prescription is that the debt owed to a creditor is extinguished and the creditor can no longer institute action to recover the debt, …
Rules on extinctive prescription. Do not wait until it is too late! Read More »
The appointment of a parenting coordinator or facilitator has become a regular feature of divorce litigation where the interests of children are in issue. In TC v SC (2018) ZAWCHC 46, a recent Western Cape High Court case, decided by Acting Judge Diane Davis on 18 April 2018, the Judge noted the sad reality in …
What happens when somebody who is not a relative passes away, and you are aware that the person has assets, but no family to take care of the estate? When does it become your responsibility to report the estate to the Master? What are your responsibilities regarding the assets of the deceased? Section 7 of …
When should you report the Deceased Estate of a Non-Relative to the Master? Read More »
South African labour law imposes important obligations on the employer when it comes to sexual harassment in the workplace. This was confirmed in the case of Liberty Group Ltd v M (2017) 38 ILJ 1318 (LAC) (“Liberty Group”). In this case the employee was sexually harassed by a manager on four different occasions. She did …
Employers and sexual harassment in the workplace Read More »
You may have heard that the estate duty rate and donations tax rate have been increased with effect from 1 March 2018. This is in line with Davis Tax Committee recommendations. For estates of which the dutiable amount is more than R30 million, estate duty is levied at 20% on the first R30 million and 25% …
Budget 2018 Estate Duty and Donations Tax Increase: Read More »
Written contracts commonly contain a non-variation clause. This clause usually reads something like the following: “No alteration, variation of or addition to this Agreement shall be of any force or effect unless it is reduced to writing and signed by both Parties”. This is to prevent one of the parties claiming that there was an …
A right of extension, in terms of Section 25 of the Sectional Titles Act 95 of 1986 (“the Act”), allows the developer of a sectional title scheme to reserve a right in its favour, to erect further phases to the development, within a stipulated period and for its personal account, further buildings or extensions on …
South African law regards repudiation of a contract as a form of breach. What is repudiation and what are its consequences? In Van Rooyen v Minister van Openbare Werke en Gemeenskapsbou 1978 (2) 835 (A) the Court held that repudiation occurs when one party to a contract without lawful grounds indicates to the other party, …
The dilemma It is unfortunately an all too common occurrence that when partners separate, and spouses divorce, one parent is granted custody of the children, while the other parent shows no further interest in their children’s welfare. Under such circumstances, custodian parents are often unable to afford their children’s public-school fees, with the only available …