Tag: liquidation
Addressing merger law gaps – improving regulatory clarity
South Africa can promote future investment and encourage corporate growth by addressing discrepancies in laws governing mergers and amalgamations. Section 44 of the Income Tax Act governs merger and amalgamation transactions from a tax perspective. It provides tax rollover relief if certain requirements are met.
Partnership dispute planning – prenups for corporate divorce
In the same way that prenuptial agreements are considered a necessity for many marriages, business partnerships require meticulous planning to safeguard against the consequences of potential disputes and ensure a smooth separation if the need arises. By incorporating comprehensive shareholder agreements or Memorandums of Incorporation (MOIs), businesses can protect their interests and foster fair and equitable outcomes during unforeseen conflicts.
Built environment risk management – strategies for construction projects
In George, thirty-four people died when a partially completed five storey residential building collapsed. This event is tragic, and albeit the worst building disaster in South Africa, is by no means an isolated incident of professional incompetence.
Voting rights denied for post-commencement creditors – implications
The recent decision by the Gauteng High Court denoting that creditors who have acquired their claim in a business after business rescue has commenced are not entitled to vote on business rescue plans could set a significantly risky precedent for any future organisations facing business rescue.
Trade & insolvencies – impact of macro-economic & geopolitical dynamics
With an economic growth forecast of only 1.6% over the next three years for South Africa, businesses are facing a tough trading environment, exacerbated by the impact of geopolitical tensions, disruptive new technologies, persistent weather catastrophe threats and failing public infrastructure and services.
Insolvency – the impact of distressed corporates & director apathy
An issue which is of concern to insolvency practitioners across the globe and in South Africa, is the ever increasing level of corporate distress and uncertainty, and which impacts the role of insolvency practitioners (liquidators and business rescue practitioners) and the manner in which they can assist in the restructuring of companies that might be on the brink of insolvency.
“Seismic ruling” – financiers cannot vote on a business rescue plan
Should post-commencement financiers have a vote on business rescue plans? A critical look at Wescoal Mining (Pty) Ltd & Another versus Mkhombo NO & Others (2023-079991) [2023] ZAGPJHC 1097 (2 October 2023). On 2 October 2023 Judge Wilson of the Gauteng Division of the High Court of South Africa endeavoured to ascribe a meaning to the undefined term "creditor" in Chapter 6 of the Companies Act 71 of 2008 (the Companies Act).
Unforeseen tax debt arising from crypto trading
Landing in a position of indebtedness to South African Revenue Service (SARS) can be quite a stressful journey on its own; if forgetting to leave room for crypto profits or gain, in your suitcase, the destination becomes all that more daunting.
Court upholds exceptions
A few years ago, several well-known short-term insurance companies took legal action against an intermediary company due to the damages they incurred as a result of the intermediary's collapse. The intermediary, presently in liquidation, was responsible for the collecting and accounting of premiums owed to the insurers.
Why trade credit insurance matters
South Africa is currently experiencing challenging political and economic conditions, which has a direct impact on the financial and trading performance of businesses. Vulnerabilities to external shocks have also converged at the worst possible time in our post-pandemic economy, with the impact rapidly manifesting in financing becoming more difficult to secure, more expensive and dwindling foreign direct investment.