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Filter: Corporate
Could a sale of shares be subject to the National Credit Act?

14 December 2016

My company holds shares in a larger construction company worth about R5 million. I’m looking at selling my shares to... an interested party that the construction company is also happy with. However, the party can only pay a deposit of R1,5 million and thereafter the remainder in monthly installments over a period of 18 months with an interest of prime plus 1%. My bookkeeper says I must be wary of falling under the National Credit Act. Could this be a possibility?

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461
Article
The ‘when’, ‘who’ and ‘how’ of taking valid company resolutions

14 December 2016

I’ve purchased a shareholding stake in my dad’s family business. I’ve been part of the family business for some time... but now I’m a shareholder and clueless as to the basics of how the company’s shareholders are supposed to take decisions. What should I know about company resolutions?

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587
Article
How to register a private company

08 September 2015

I have been approved to open up a small franchise business. The franchisor however requires that I run the franchise... business in a private company and not in my personal name. Where must I start with setting up a company?

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382
Article
Commercial Mediation: The long-awaited arrival of mainstream mediation

11 June 2015

This article provides a general overview of the process of mediation, specifically in the commercial context. In the international arena,... mediation has become a primary option for parties wishing to resolve their disputes as its potential benefits outweigh lengthy litigation. In South Africa, commercial mediation is a recent development, but is well on its way to becoming an efficient and cost-effective alternative to litigation. The introduction of court-aligned mediation in the Magistrate’s Courts of South Africa adds impetus to the notion that mediation is here to stay.

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397
Article
Has the bell tolled for broad-based ownership and employee trusts?

11 June 2015

The Department of Trade and Industry (DTI) published a notice on 5 May 2015 where, in a move that raised... concerns across the entire business sector, it was announced that Broad-Based Ownership Schemes (BBOS) and Employee Share Ownership Programs (ESOPs) will only contribute a maximum of three points to the total BEE scores of companies which implement such solutions after the date of the announcement. In light of the flood of criticism that followed this announcement, the DTI published a retraction on 15 May 2015 - and although wholly retracted, it came with a warning.

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378
Article
The company you (don’t want to) keep: When shareholders won`t share anymore

13 February 2015

Entering into any business venture is fraught with challenges, risks and, hopefully, also rewards; but what happens if somewhere along... the line the shareholders of a company no longer get along and want to call it quits? Can a solvent company be wound up if the shareholders don’t get along? 

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292
Article
Be careful what you do with that overheard telephone conversation

21 November 2014

Insider trading has always been surrounded by controversy, frequently making headlines and ruining reputations. Insider trading is a prime example... of discrimination, as it gives a small, privileged minority, an unfair advantage over the majority who do not have access to the same information or opportunity. So what can happen when the CEO next to you in the business lounge starts talking about that big new deal?

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272
Article
Setting up your non-profit company

19 October 2014

You’ve been doing charity work for a number of years, and have finally come to the conclusion that you would... like to do this full-time and set up a non-profit entity from which to run your new charity. First things first, you want to set up a non-profit company. But what are the requirements for setting this up?

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343
Article
Financial distress: your obligation to inform the public

22 November 2013

In the last few years, many business owners have had to make difficult decisions to restructure their business in order... to survive the economic recession. Family businesses were sold, assets made to money and unfortunate events even led to liquidation of businesses. Owners, understandably, often don’t keep perspective of their financial struggles and will do anything to salvage the business without taking formal steps or letting anyone know of its dire financial position. The following questions thus arise: At what point must you take formal steps to notify persons about your financial situation? Who needs to know? How much do they need to know?

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363
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