In terms of Chapter 6 of the Companies Act 71 of 2008 (hereinafter referred to as “the Act”) a company, which is financially distressed, may be placed under business rescue. The business rescue proceedings may be commenced with either through a valid resolution passed by the board of directors or through an application made to […]
Read more...Category: Commercial Law
Commercial Law
The duties and liabilities of company directors
The woes of Steinhoff have been in the news since December 2017. As has been widely reported in the press, the share price of the company fell by about 95% after it became known that the company materially overstated its profits and materially understated some of its liabilities. The board of Steinhoff consisted of eminent […]
Read more...When is payment of my commission due and payable to me by my employer?
I am employed as a temporary employee and my employer is now withholding commission I am entitled to in terms of our verbal employment agreement. Temporary employee: An employment situation where an employee is expected to remain in a position for a certain period of time. Temporary employees may have the opportunity to achieve permanent […]
Read more...What does “Offer + Acceptance = a Contract” mean?
What does “Offer + Acceptance = a Contract” mean? A contract is in our Law created where parties reach consensus on the essential elements of the specific contract. Where formality requirements are prescribed, the contract will only be binding if these have been complied with. Consensus is in most cases reached by one party making […]
Read more...When must VAT, transfer duty and capital gains tax be paid to SARS on the sale of immovable property?
VAT is payable to SARS by the seller together with any other VAT payable to SARS for the cycle in which the purchase price was received by the seller irrespective of when the contract of sale was signed. Transfer duty is payable within 6 months from the date of signing of the agreement, failing […]
Read more...I would like to buy a business. Should I buy the shares of the company owning the business or rather the business itself?
I would like to buy a business. Should I buy the shares of the company owning the business or rather the business itself? The company might sometimes have assessed losses, which would be available to you as purchaser for tax purposes. From that point of view the temptation would be to rather take over the […]
Read more...Is kapitaalwinsbelasting by die afsterwe van die eienaar van kapitale bates betaalbaar?
Ja as algemene reël. Die koers op natuurlike persone van toepassing, naamlik 40%, geld. Verder geld dit ook (soos in die geval waar kapitale bates van die hand gesit word) slegs ten opsigte van die kapitale wins sedert 1 Oktober 2001 gemaak. Kapitaalwinsbelasting geld verder nie ten opsigte van sekere bates wat vrygestel word nie, soos die oorledene se […]
Read more...What mistakes are often made with filling in contracts of sale of the property?
Most of you use standard forms for a contract of sale of the property. There is nothing wrong with this, as long as the form is properly drafted. It is, however, very important to also fill in the form correctly. The following mistakes are often made:- * The amounts (normally the purchase price, the deposit […]
Read more...What is the effect of a suspensive condition in an agreement of sale?
In an agreement of sale between a buyer and a seller for the acquisition of a property, there maybe suspensive condition clauses. Until all the suspensive conditions have been met, the sale cannot proceed. Thus it is very important to understand the power of suspensive conditions in a deed of sale. These are conditions written […]
Read more...What is a ‘rouwkoop’ clause?
What is a ‘rouwkoop’ clause? A ‘rouwkoop’ clause in a contract of sale provides for the purchaser to pay a deposit to the seller that is not refundable should the purchaser withdraw from the contract. Most contracts of sale, that provide for the payment of a deposit by the purchaser, also contain a provision that […]
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