Tag: shareholder agreement

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.

In the fast-paced world of startups, particularly those breaking new ground, the excitement of innovation and market disruption often takes centre stage. However, amidst this buzz, it's crucial for startups to prioritise their foundational business structures from the outset.

Family-owned businesses make up a significant portion of all businesses registered and operating in South Africa. In fact, family-owned businesses are today recognised as vital participants in, and contributors to, the country’s economy.

The Competition Commission has recently referred WesBank, the car finance division of First Rand Bank, and Toyota Financial Services South Africa (TSA) to the Competition Tribunal, to be fined 10% of their turnover for the alleged violation of the Competition Act.

Business partnerships end for a number of reasons. Some are friendly and in the best interest of both parties - while others reach a bitter, nasty end. Even the COVID-19 pandemic and related lockdown has forced directors to evaluate their interests and involvement.

In the case of Dawn Consolidated Holdings Pty Ltd (Dawn) and others versus the Competition Commission, the Competition Appeal Court (CAC) had to consider whether a non-compete clause in a shareholder’s agreement contravened the Competition Act, and laid down some guidance for determining whether agreements exhibit the character of anti-competitive conduct.