Business Brief - resource:articles

Valuation of Intellectual Property Assets

By far the most significant recent transaction from a value perspective is Google's acquisition of Motorola Mobility Holdings Inc for $12.5 billion, which was motivated on the basis of Google gaining access to Motorola's portfolio of patents.

VoIP quality and reliability? No problem.

VoIP is often blamed for quality or reliability issues with phone and call centre systems, but in reality it is completely ready for carrier-class communications.

Government spouses get quick access to pension funds on divorce

When it comes to divorce, the law governing the Government Employee Pension Fund ("GEPF") has been ruled unconstitutional by the Western Cape High Court.

Investing, retiring and the budget

The challenge Finance Minister Pravin Gordhan faced in his 2012/13 Budget was how to narrow the budget deficit, meet social spending demands and maintain infrastructure investment. He essentially did so by raising taxes and the tax burden.

The tablet dons a suit and tie

The tablet PC, popularised by the Apple iPad, has revolutionised the consumer computing market. A huge demand drove other suppliers to develop similar touch-screen, ultra portable tablet devices, and this in turn gave rise to the explosion of apps and multi-media content.

Did Bernanke Prevent Another Depression?

In a lecture given at George Washington University on March 27, 2012, the chairman of the Fed said that the US central bank's aggressive response to the 2007–2009 financial crisis and recession helped prevent a worldwide catastrophe.

Prevent your outsourcing costs spiralling out of control

Managed services are becoming increasingly popular in the South African market as many businesses look towards models that eliminate the need for investment in technology whilst outsourcing non-core functions to specialists.

Moving towards a virtualised desktop environment. Is SA ready?

Client virtualisation is high on the agenda of many enterprises. According to a survey by consultants Centracon, nearly half of all 309 organisations polled believe that virtualisation is more efficient and economical than traditional desktop structures.

Getting the most out of your call centre analytics

Technology offers a powerfli means of improving the performance of call centre agents, with analytics (reports) having the most direct bearing. But the intricacies of analytics necessitate having a trusted advisor on your side, to choose and interpret the right data models and reports.

VoIP in South Africa – a somewhat muffled user experience

There are rumblings emerging from the midst of the Voice over Internet Protocol (VoIP) space – they are the groans of frustrated users who have invested in the technology with little or no guidance and support. Like most other areas of ICT and telecoms, the value of VoIP lies in understanding its correct application.

Window of opportunity opens...

If your company is thinking of selling any capital assets and its year end is not February or March there may be a window of opportunity to do it at the lower effective tax rate for a short while.

The two new labour acts…

We further expect Business to be vocal about a number of amendments that will affect their cost structures and their willingness to employ. What is important for employers is it is not only further regulation for the Temporary Employment Services industry but further regulation for all forms of a-typical employment.

Significant declines in liquidation, insolvency stats

South Africa's liquidations and insolvency numbers declined dramatically in February, figures released yesterday by Statistics South Africa indicate.

South Africans still have an edge in global markets

South Africans should be more self-confident about their ability to innovate in the IT solutions space: We operate in a vacuum a lot of the time. It's only when you go to the international conferences that you begin to realise that in some areas we are actually way ahead of our counterparts in the rest of the world.

Budget takes us back to basics

Considered by many a different form of "capital punishment" – or at least a lifelong sentence. So investors would have paid keen attention to the tax amendments put forward in National Treasury's 2012/13 Budget, and would have watched as further judgment was handed down.

CPA will present contact centre challenges and opportunities

Now that the act is in effect, companies must have a strong grip on their customer interactions, information flow and document management. When disputes arise with customers, it is up to the company to provide full records of the interaction, whether that be in the form of a contact centre call recordings, email interactions or a contract signed in-store.

Green Leasing: a moral obligation or a smart investment?

Green leasing, which sees building owners and tenants introduce sustainable practices into building operations to mutual advantage, has taken off internationally. In South Africa, however, awareness of the concept is just filtering through to larger organisations.

SARS Employer filling seasons lies just around the corner

SARS will soon announce when the annual PAYE reconciliation submission season is to commence. The likelihood is that it will begin on the first working day of April (Monday April 2) and extend until the last working day of May.

The Trillion-Rand budget

Last October the Medium Term Budget Policy Statement was tabled against the backdrop of a somewhat optimistic economic outlook. South Africa's GDP was expected to increase at 3.1% for 2011 and 3.4% for 2012.

Applify yourself – why all industries should embrace the iPad

The growth of tablets continues to surpass all expectations, throwing the PC industry into disarray and turning the heads of everyone from your three year-old to educationists to corporate buyers across the board.

Run of the mill qualifications mean very little

Institutions, in many cases foreign, that offer instant academic qualifications 'at the touch of a button' are on the increase and these 'qualifications' have little or no practical value in the marketplace.

2012 Tax Related Budget Proposal

The following is a summary of the tax related budget proposals announced by the Minister of Finance on 22 February 2012.

Gordhan delivers safe no surprises budget with some relief for taxpayers

Finance Minister Pravin Gordhan delivered a safe, no real surprises budget today (Tuesday 22 February) with R9.5-billion personal tax relief achieved by increasing the personal tax brackets

Marrying mobile and retail for all customers

According to eBay’s CEO, John Donahoe, there will be more change in the way consumers shop and pay in the next five years than there has been in the last 10.

Suretyships and business rescue

When a company is placed under business rescue, the question arises as to the enforceability of a suretyship given for the debts of or by the company.

Better quality data equals increased profitability

In sectors such as mining and manufacturing, where prices are often fixed or at least expected to fall within certain parameters, improving profitability is not simply a matter of increasing the selling price.

Major easing of exchange controls announced

Finance minister Pravin Gordhan has kept his mid-term budget promise made in October last year to further ease exchange controls, with a series of recently announced relaxations.

Confidence: The key for unlocking your future

Having confidence is the key to unlocking opportunities. Sadly, however, many talented people miss out on discovering their true potential and abilities due to a lack of confidence

Five tips to grow your business in a downturn

Governments are using austerity measures to battle the downturn. Families are tightening their belts. But for businesses there are five simple ways to save costs and grow even during economic turmoil.

Disclosure of D & O Policies under Commercial Agreements

A 2011 Australian court decision in BOS International v Babcock ruled that an undertaking in a commercial agreement to provide information about a company's assets and financial position overrides a confidentiality clause in a directors & officers insurance policy.

ORM helps marketers turn crises into opportunities

Many marketing managers barely pay attention to social media until a real crisis hits their brands. At that point, they'll rush into action with no real plan or strategy behind the frantic tweets and Facebook posts they send out in response to the rapid spread of untrue rumours or angry complaints across social networks.

Anti-corruption legislation is becoming an international norm

Internationally, corruption in business is coming under increasing scrutiny, particularly in regard to corrupt payments made to government officials in order to gain trade advantages. No longer can the greasing of palms be regarded as an acceptable (or risk-free) way of growing a business.

Certification fraud denting market

Fewer available places at tertiary education institutions and a marked decrease in learners who have matriculated with mathematics and science is a major concern to education authorities and employers.

Launch of new qualification will fill vital skills gap

South Africa, presently rated as one of the least competitive countries in the world, could see the business tide beginning to turn in the nation's favour when a practical, multi-faceted approach to the development of crucial business skills gets underway at Rhodes University this year.

SA loses scarce skills to Africa

South Africa stands to lose scarce skilled resources to other African countries

The Three Pillars of Human Resource Outsourcing

Outsourcing a strategically important business function such as Human Resources is a difficult business decision to make

Is 2012 the year of ‘delivery’ for data quality?

The relevance of data quality in achieving delivery for Business Intelligence (BI) implementations has becoming increasingly clear over the past few years, and in 2012

Defining your financial goals for 2012

Most businesses are created, at least in part, to make money, and financial achievement is an important way to measure the success of a business

Top SA law firms merger

Bowman Gilfillan and Adams & Adams have agreed in principle to merge Bowman Gilfillan's intellectual property law practice with Adams & Adams on 1 March

Information is the new currency. Is your data adequately protected? - Part 2

An XML database firewall monitor is another necessary security measure, as this will monitor all requests to the database and block and flag irregular or malicious requests whilst checking employees' access rights and permissions.

Socialising on a global scale

The widespread growth of social networking proves that the ability to reach a multitude of people quickly, instantly and without interruption is a highly attractive proposition for consumers of all ages and backgrounds

Demystifying the steps to a greener organisation

Sustainable energy has emerged as an important corporate agenda point and many organisations today communicate their efforts in strategic marketing campaigns.

How does HTML5 fit into your mobile strategy?

The thorny issue of the role HTML5 can play in the mobile landscape has yet to be put to bed for once and for all.

2012: Trends in the contact centre

Change is afoot in the South African contact centre industry, as savvy companies realise that their customers are communicating with them in new and different ways.

Information is the new currency. Is your data adequately protected? - Part 1

Towards the latter part of the 20th century, computers began to emerge as a powerful force to be reckoned with, and as the 21st century continues it has become increasingly clear that information has become the new currency and data can be regarded as a measure of wealth in today's world

Three Cheers for Civilisation and Free Markets this Festive Season

As you open your gifts this festive season, or tuck into your dinner, take a moment to think about the extent to which free markets have made this possible.

Shining a light on local content

Last week, the amendments to the Preferential Procurement Policy Framework Act (PPPFA) came into effect. The new amended Act gives the Department of Trade and Industry (DTI) the power to cherry-pick certain sectors and products within the South African economy for special privileges

The art of law - contracts for the disposal of the company's business and major assets

The decision in Royal British Bank v Turquand was handed down in the English courts over 150 years ago, but it remains a cornerstone of company law.

The art of law - An expert contract draftsperson

The art of law - An expert contract draftsperson will foresee what could go wrong after the contract is signed, and make sure that the contract regulates those eventualities.

e-taxline - The evolution of voluntary disclosure

The Voluntary Disclosure Programme (VDP) expired on 31 October 2011. This program allowed taxpayers who voluntarily disclosed certain defaults to SARS to be granted relief from additional taxes, penalties and interest

Not always above board

Non profits that are struggling to successfully apply for funding from the National Lottery Board (NLB) should persevere in their attempts – even if it means finding a public interest lawyer to stand in their corner.

Unemployed versus Unions: Getting the Priorities Right

More than 6 million South Africans are unemployed and unionised members are becoming more cautious about their union engagement

Five communication trends for the contact centre industry

The age of the one way communication street - where brands controlled the manner in which their customers communicated with them – has passed.

ERP's Value for listing

Listing on the stock exchange may be a daunting prospect but it is destined to offer a wealth of benefits and opportunity for the business, not least of which is the elevated status and financial standing created.

2011: The year of big data

This was the year of big data. In the last two to three years we have accumulated more data than ever before¹. This provides both a challenge and an opportunity for companies, and the ones who get it right fastest are going to lead the pack.

Why labour broking works in the software development industry

A study by the Development Policy Research Unit at the University of Cape Town has shown that 20% of all jobs created in South Africa since 1994 have been for temporary employees and were generated by labour brokers.

How should trustees of pension funds control administration fees?

Trustees of pension funds have been in the news of late for the wrong reasons – investments gone awry. One of the ways in which trustees can reduce the risk of this happening is by the appointment of expert investment administrators

E-Tolling - impractical, inefficient and ungovernable

The latest debacle and confusion around the how the authorities intend to enforce e-tolling offenders is yet another example of how little thought was given to this process.

New rules make international arbitration more efficient and cost-effective

The Court of Arbitration of the International Chamber of Commerce (ICC) has introduced new rules of arbitration which will have a far-reaching impact on the resolution of international business disputes.

Watershed year for SMS approaching

2012 is the year the electronic communications opt-in vs opt-out debate is going to come to a head, and the fallout is going to have a significant impact on both businesses and consumers.

Protection of Personal Information Bill: Companies should get their houses in order, soon

Organisations hesitant to fork out the extra cash and effort needed to start complying with the Protection of Personal Information Bill should consider the significant international trade implications of noncompliance.

The importance of project management

Today's corporate organisations have developed a completely new way of doing business that has overturned the rigid, hierarchical and divided system of labour in years past.

Cipcing into chaos

In July financial journalist Ann Crotty reported on the chaos that is being experienced with the registration and deregistration of companies and close corporations at the office of the newly established Companies and Intellectual Property Commission (CIPC)

Credit card fraud can be stopped

The rise in credit card fraud over the last year is a cause for major concern and financial services organisations need to tighten their grip on illicit transactions fast, or face not only losing money but losing customers as well, not to mention the reputational damage that may be incurred.

HR and Payroll Legislation Expected in 2012 and beyond

The new methods of granting a measure of tax relief on the contributions made to medical schemes will be implemented from March 2012, and is expected to be followed by similar amendments to the taxing of medical expenses in 2013

Without connectivity we are lost

The recent data outages at international company Research in Motion (RIM), which left Blackberry users across Europe, the Middle East, Africa, India, Brazil, Chile and Argentina without connectivity for days on end and sparked outrage from these users on social media platforms, only serve to highlight how dependent the modern world has become on stable Internet connectivity, particularly through previously non-traditional channels such as smartphones.

Choosing the right PR agency

Companies looking to further their corporate communications strategies serve to benefit greatly from appointing the correct public relations agency. PR is a long-term investment, so it's vital that you make the right decisions when it comes to deciding whom to hire. Take the following points into consideration:

The China effect - eroding SA's economy, increasing unemployment and delivering inferior products

We've all heard the saying 'local is lekker' and seen campaigns by local manufacturers urging us to support South African brands. However, the China effect is being felt the world over, our own country included, as businesses and retailers increasingly look towards the Far East to source products rather than supporting local manufacturers. This because of the plain fact that goods manufactured in China are cheaper.

FSP’s face closure

Failure to comply with the Financial Advisory and Intermediary Services Act (FAIS) can result in hefty fines or possible closure by the Financial Services Board (FSB) for any Financial Services Provider (FSP) or financial intermediary who does not ensure an accurate record of all services rendered or advice offered, and securely store the information for up to five years.

Convergence driving business expectations

Technological convergence - initially confined to the integration of voice, video and data communications onto a single (IP) network - has entered a new era with the coming of age of Fixed-Mobile Convergence (FMC).

Katz Breskal Insurance Brokers joins RBS to Create one of SA’s leading independent brokerages

South African insurance brokerage, Risk Benefit Solutions (RBS), has merged with Western Cape based Katz Breskal Insurance Brokers (KBIB) to form one of the largest independent insurance brokerages in the country. The merged company - RBS Katz Breskal - will service a book of approximately 20 000 clients and approximately R300 million in annual premium income.

Walmart changes landscape for future mergers

Merging companies need to give careful consideration to whether their transaction gives rise to public-interest concerns, and if so, they should deal with these at an early stage of planning their transaction.

Promotion of Access to Information – is your manual ready?

The deadline for businesses to submit their manuals on how to access their records, as required by the Promotion of Access to Information Act of 2000 (PAIA) is fast approaching..

Attention No-one! Have I got a brand unavailable for you!

In a R30 billion plus industry, the average South African is bombarded by advertising. Some of its good, some of its bad, some we take (a little) notice of, while some annoy or irritate and some of it helps us in our lives.

The art of law - not every financially distressed company is a suitable candidate for business rescue proceedings

The decision of the Pretoria High Court in Swart v Beagles Run Investments 25 (Pty) Ltd [2011] ZAGPPHC 103, handed down on 30 May 2011, is the first reported decision involving the business rescue provisions in chapter 6 of the Companies Act 71 of 2008, and is a useful early indication of the attitude of the court to such applications.

Keeping employees records

Employers should familiarise themselves with those employee records that must be retained if they are not to incur severe penalties . These records can be maintained electronically and copies of documents scanned and kept online (Paymaster can do that for you)

Jurisdictional challenges may be raised at the arbitration stage of the dispute-resolution process

A perennial issue that arises in disputes that are referred to the CCMA relates to when an employer is entitled to raise a jurisdictional point on whether the CCMA can adjudicate a matter referred to it. There have been various differing decisions over the years on this question. This issue came up again in the recent judgement of Bombardier Transportation (Pty) Ltd v Mtiya NO & others (2010) 31 ILJ 2065 (LC).

Working hours and how to pay correctly

The Basic Conditions of Employment Act applies to all employers and workers, but not members of the -

National Defence Force,
National Intelligence Agency, or
South African Secret Service; or
unpaid volunteers working for charity

The art of law - the company secretary is an important corporate officer

The role of the company secretary in the affairs of the company has grown in importance since the early days of company law, when he or she was merely a lowly clerk.

Economic Freedom Defined

What is economic freedom in plain language and in newspeak? It has such a well-established and universally acknowledged meaning in that anyone who predicted a few months ago that it would be used to connote its opposite and be taken seriously would have been asked what they were smoking.

The art of law - Agreement between the parties to resolve their differences

It is not unusual for the minority shareholders in a company to believe that the way the business of the company is being run and its affairs conducted is unfair toward them. In these circumstances, their primary legal remedy is the so-called "oppression section" of the Companies Act.

IDZs get additional tax incentive for manufacturing projects

The 2011/12 Budget speech by the Minister of Finance, Pravin Gordhan, highlighted tax relief for qualifying industrial policy projects, as part of the priority programmes required for implementing the New Growth Path.

Simplified learnership tax incentives to support job creation

The Finance Minister, Pravin Gordhan, emphasised in the 2011 Budget speech that the Government’s aim is to put development first and not dependence on welfare – training our youth to become pioneers in industry will accelerate the creation of employment in the future.

Allowances relating to leasehold improvements

In terms of certain lease agreements, the lessee may be obliged to effect improvements to the leased asset either by erecting a building on the land or improving an existing building. The issue with such arrangements is that as the land belongs to the lessor and because in law, buildings attach to land, the building becomes the property of the lessor when it is built. The lessor, however, is not entitled to the use of the building until the end of the lease period.

The importance of the statement of assets and liabilities

Local assets and liabilities must be individually listed, eg fixed properties, shares in private companies, mortgage bonds and bank overdrafts. The local assets and liabilities must be reflected at cost. The foreign assets and liabilities are translated to rand using the exchange rate as at the end of the year of assessment.

Overhaul of R&D allowances

Five years ago, attractive Research and Development (R&D) income tax allowances were made available to those taxpayers that conducted research or were involved in devising, developing or creating any invention, design or computer program. In terms of section 11D of the Income Tax Act, taxpayers who were involved in R&D could claim a 150 percent allowance on expenditure (excluding capital expenditure) actually incurred by such taxpayers directly in respect of activities undertaken in the Republic.

Creative destruction makes the world go around

Is it a selfish desire that drives individuals to seek new ways to make life easier, more enjoyable, and more rewarding? Does this selfish desire require a God-like presence to steer it and manage it so that whatever developments take place become available to everyone in the country? Or should it be left to the creative instinct of ‘man’ to satisfy the needs of his fellows?

The art of law - steering clear of the general anti-avoidance rule in the Income Tax Act.

One of the most significant amendments to the Income Tax Act in recent years was the repeal of section 103(1) which contained a GAAR (general anti-avoidance rule) and its replacement by a new Part IIA of the Act (embodying the new GAAR). The new GAAR applies to "impermissible avoidance arrangements" (as defined in the new section 80A) entered into or carried out on or after 2 November 2006.

How to save for Education!

Most parents in South Africa place a high importance on ensuring their children receive a primary and secondary education. However, without a certified tertiary education, the chances of finding long-term employment are discouraging. Parents are urged to start saving now for their children's tertiary education in order to give them the best chance of overcoming the cycle of unemployment and poverty afflicting the country.

The art of law - a director who fails to disclose his personal interest in company contracts risks imprisonment

It is widely accepted in the business sector and the community at large that company directors have legal duties of various kinds. It is also accepted that, where directors fail in their duties, they may be faced with claims for damages from the company, or from its shareholders.

The art of law - in litigation between a taxpayer and SARS, the onus of proof is generally on the taxpayer

In any litigation, that is to say, a dispute played out in court between opposing litigants, the onus of proof is crucial. The court itself does not undertake any investigation into the disputed facts, and it is for the parties to prove their version of the facts by placing evidence before the court, either in the form of documents or by calling witnesses to testify on oath.

Careless words to a creditor may result in sequestration

Watch your words when writing to a creditor - you may inadvertently commit an "act of insolvency"

It is sound advice to choose your words carefully when you speak, and be doubly careful when you commit yourself in writing, because what you say could come back to haunt you.

Directors - banned for life?

Amongst the myriad of factors that a director needs to be aware of, there is also the potential that he can be placed on probation or declared delinquent. This includes members of close corporations who are participating in the management of a CC. It also includes prescribed officers (for example if you are a senior manager with executive control). The director does not even have to be a current director - the application can still be made against an ex-director as long as it is submitted within the twenty four months preceding the application he was a director of the company.

Should my company be voluntarily audited?

The new Act aims to relieve certain levels of business from the formal requirements of an audit. Public and State-owned companies have to be audited. However, a private, personal liability or non-profit company will only require an audit if it is desirable in the public interest, having regard to certain factors such as annual turnover, size of workforce and the nature of its activities, and those who fall outside the public interest criteria will be required to have an independent review of their annual financial statements.

What about our shareholder's agreement?

Most people who are married have an antenuptial contract, yet how many shareholders in business have a contract which offers them, together with the business, a form of protection in the event of unforeseen circumstances? The advent of the new Companies Act by no means changes the fact that a shareholder agreement is still vital to your business, as it deals with the very crucial relationships between the shareholders themselves and the company.

Your MOI - Tips for the way forward

Your company's Memorandum and Articles of Association is now automatically referred to as a Memorandum of Incorporation or MOI. It is the same document, just with a new name. Companies which existed before 1 May 2011 have been given a 'grace' period of two years until 1 May 2013 in which to convert their old Memorandum to comply with the new Act. The amendment needs to be registered at the Commission, together with a special resolution.

New VAT registrations increasingly complicated

More stringent verification procedures put in place SARS has attempted to curb Value-Added Tax (VAT) fraud by implementing strict verification procedures for VAT registrations.

The new Companies Act 2008

The art of law - in certain circumstances, the new Companies Act of 2008 empowers a court to declare a company not to exist as a legal entity.

The consequences of the "unconscionable abuse of the company's juristic personality"

Improve Schooling: Let in the Entrepreneurs

The education industry has the potential to become the largest investment sector on the world’s stock markets. However, for this to occur, governments would have to relinquish their existing dominance over and control of education.

Grant Thornton welcomes VAT relief for residential property developers

October 2011

Grant Thornton is pleased with legislation that provides temporary relief from VAT payments for residential property developers who lease units before intended sale.

Does the private health sector fall short?

Critics of private health care in SA argue that the private sector does not do enough, that it dumps patients on the public sector and is only interested in "money first". Sonderup, Spearman and Geffen recently argued in the Business Day article, When the private sector falls short, 3 Oct. 2011, that medical schemes are evil because they "do not cover the treatment of many diseases causing many patients to fall into the void between the public and private sectors".

No time to talk about the business - is the governance burden dominating Board agendas?

The burden of governance issues at Board level has become ever greater and these issues are crowding out other items on Board agendas. Despite more frequent and longer Board meetings, directors complain that there just isn’t enough time to talk about the business anymore.

A manager may be obliged to disgorge secret profit

How wide is the range of a company's officers and employees who owe it a fiduciary duty?

The decision of the Supreme Court of Appeal in Volvo (Southern Africa) (Pty) Ltd v Yssel 2009 (6) SA 531 (SCA) throws useful light on one of the most fundamental concepts in company law, namely, that of a fiduciary duty which is owed to the company by certain individuals within the company structure.

Labour: Time for Government to Start Listening

The country’s greatest crisis lies in the large-scale unemployment that is causing havoc in the lives of millions of people. The situation has not improved. In fact, it is being made worse by deliberate actions that result in more people being unemployed.

NRSA Insurance law September update

With the ever-increasing practice of leasing aircraft for operation across Africa, owners and financiers would be well-advised to familiarise themselves with their insurance policies, and to look beyond their policies for additional security in the form of registering rights and mortgages.