Background: On 27 December 2024, certain provisions of the Companies Amendment Act No. 16 of 2024 and the Companies Second Amendment Act No. 17 of 2024 (collectively the “Amendment Acts”) came into effect, both of which amended certain provisions of the Companies Act No. 71 of 2008 (“Companies Act”) (“Amendments”)....

Background: The Companies Act No. 71 of 2008 (“Companies Act”), sets out specific provisions for dealing with conflicts of interests in a company, these provisions provide clarity on how a company should deal with a conflict pertaining to a director of a company, to ensure that transparency and accountability is...

Background: The South African economic landscape is frequently disrupted by unpredictable external factors that significantly affect the business environment, complicating efforts to expand and improve profitability for companies. These challenges expose businesses to the risk of insolvency and potential liquidation,...

Background: This article is the second installment in a three-part series exploring fundamental legal principles pertinent to transactions involving companies. The series aims to illuminate aspects that all parties engaged in such transactions should understand. This particular article will concentrate on forms of...

Background The Prevention and Combating of Corrupt Activities Act 12 of 2004, commonly known as “PRECCA”, is a cornerstone in South Africa's legislative framework aimed at combating corruption. Among its various provisions, Section 34(1) is particularly significant as it imposes a duty to report actual or suspected...

Pretoria, Gauteng (10 July 2024) – VDMA Law, a Pretoria-based law firm, today announced that it has joined Meritas, a global alliance of independent business law firms. The affiliation offers VDMA Law access to more than 8,400 lawyers in 90 countries and 245 markets worldwide. The firm’s clients can now obtain legal...

Background: Loadshedding, being the deliberate and temporary shutdown of electricity supply to certain areas by a utility provider due to insufficient power generation capacity to meet demand, is a well-known phenomenon in the Republic of South Africa. With South African role players having realised that loadshedding...

Background: This article marks the beginning of a series that delves into essential legal principles relevant to transactions involving a company. It aims to shed light on aspects that all parties involved in such transactions should be aware of. Part 1 will examine the origins of a company's powers and the...

Incorporators often establish companies with specific goals, such as acquiring certain assets, pursuing business opportunities or realising commercial advantages. Prior to committing any resources towards a company prior to the formal incorporation and registration of such company, it is only natural for the...

Background: In terms of the provisions of the Companies Act No. 71 of 2008 (“Companies Act”), every company must possess a Memorandum of Incorporation (“MOI”). The MOI specifies the rights, duties, and responsibilities of shareholders, directors, and others, within or related to a company. A company may, from time to...