WHEN IS IT APPROPRIATE TO MAKE USE OF A SECTION 345 LETTER OF DEMAND?
Background: A letter of demand in terms of section 345 of the Companies Act No. 61 of 1973 (the “Old Act”) is a powerful tool for debtors who are owed an amount of money exceeding R100 (one hundred Rand) (“345 Letter of Demand”), however, creditors should be aware of...
THE IMPORTANT ROLE WHICH PRE-EMPTIVE RIGHTS PLAY FOR SHAREHOLDERS OF PRIVATE COMPANIES
Background: Pre-emptive rights give shareholders of a private company the right to acquire additional shares in a future issue or transfer of a company’s shares prior to those shares being offered to third parties. These rights are also known as “rights of first...
REGULATING CRYPTO ASSETS – IS IT THE BEST WAY FORWARD?
On or about 20 November 2020 the Financial Sector Conduct Authority (“FSCA”) took its first meaningful strides towards incorporating crypto assets into the South African legal framework by publishing a draft declaration (“Draft Declaration”) which declared crypto...
SHADOW DIRECTORS VERSUS PRESCRIBED OFFICERS
Background: The Companies Act No. 71 of 2008 (“Companies Act”) defines a director as either a member of the board of a company, as contemplated in section 66 of the Act, or an alternate director of a company and includes any person occupying the position of a director...