By Lindokuhle Mashilo, Candidate Attorney and Dominique Lloyd, Senior Associate Introduction The devastating economic effects posed by the Corona Virus Disease 2019 (COVID-19) have left many South Africans wondering whether their jobs are on the line and many business owners fighting against the odds to ensure their businesses’ survival. One way to negate the adverse

By Saul Mayers, Associate 1. Introduction Unforeseeable and unfortunate hardships may befall a company, possibly placing its business in the precarious state known as “financially distressed”. In terms of section 128(1)(f) of the Companies Act No. 71 of 2008 (the “Act”), “financially distressed” in reference to a particular company at any particular time, means that

By Elani Vogel, Candidate Attorney and Dominique Lloyd, Senior Associate Introduction  Once a company has been placed into business rescue, it is vitally important for the respective processes to be properly followed. Chapter 6 of the Companies Act 71 of 2008 (“the Act”) stipulates that the respective Notices, required to place a company into business

By Wesley Pons, Associate, John Mackechnie, Associate, and Alec Veitch, Partner 1. Introduction Globally, major sporting events, festivals, conferences, accommodation, flights and bookings in general have been postponed or cancelled as a consequence of the COVID-19 pandemic. In South Africa many organisers have postponed or cancelled bookings and have stringently sought to impose a blanket

By Kirsten Chetty, Associate Edited by Dean Wright, Partner and Dominique Lloyd, Senior Associate With the enactment of the Companies Act 71 of 2008 (the “Act”) and the introduction of business rescue proceedings, ‘rescue culture’ has become solidified in South African company law.  What is business rescue?  Business rescue is a process which aims to

By Pierre van der merwe and Simone jansen van rensburg INTRODUCTION  Liquidation is a procedure set out in the Companies Act of 1973, it is applicable to companies/close corporations only and not private individuals. Liquidation is a last resort and ultimately results in the demise of the business. The purpose of liquidation proceedings is to dispose

By Pierre van der merwe and Simone jansen van rensburg 1. Introduction A creditor is often faced with the decision of what form of security for the due and proper performance by the debtor of its obligations under, for example, a loan agreement, would be most beneficial to the creditor. Common forms of security include

INTRODUCTION The purpose of this article is to discuss the extent to which members of a Close Corporation (“CC”) have authority to bind the CC generally and specifically with regard to immovable property transactions. HISTORY CC’s are regulated and governed by the Close Corporations Act, 69 of 1984 (as amended) (“the Act“), together with any

By Pierre van der Merwe, Partner & Notary Publicand Simone Jansen van Rensburg, Associate & Notary Public 1. Introduction Commonly, creditors need to decide on the method in which to obtain the best security for the due and proper performance by the debtor of its obligations under, for example, a loan agreement. Often, creditors decide

By Candidate Attorney INTRODUCTION Business rescue was introduced into South African law with the commencement of the new Companies Act No 71 of 2008 (“the Act”), being effective on 1 May 2011.  Business rescue enables a company, with minimal or no cash-flow, to restructure, while obtaining some “breathing room”. Business rescue is a rehabilitation mechanism,