Tag: Companies Act 71 of 2008

Is it possible for creditors to apply for the winding up of a South African branch of a foreign company (an external company), even if the foreign holding company remains solvent, since the two entities are legally one and the same entity?

The removal of a director, by way of the shareholders’ inherent right to do so by an ordinary resolution, (section 71 of the Companies Act 2008) is the typical initial go-to remedy when a breakdown in the relationship amongst shareholders and directors arise.

From 2022, the global financial reporting agenda is set to change. This change comes as the global standard-setter, the International Accounting Standards Board (IASB), is embarking on its third agenda consultation. Much like the changes which were brought about by the second agenda consultation, the new global financial reporting agenda may result in a significant impact on how some transactions are accounted for and thereby impacting companies in various ways.

The delinquency provisions in the Companies Act are emerging as a key remedy against misconduct by directors in both the public and private sectors. What we have seen recently is that these delinquency provisions are increasingly being used to hold directors to account for misconduct. Directors must take note of this, because the penalties are extremely severe.

Cyber risks are evolving on a near daily basis posing countless threats to companies, and accordingly, directors need to stay abreast of legal developments to protect themselves and their companies in their fiduciary duties.

The media reports are full of such stories; albeit cheating in sports, State capture, wide-scale corruption at governmental, provincial, municipal, parastatal, corporate and the...