Metal & Engineering Industries Industrial Relations Developments Update
I am pleased to report that Sunil Hansjee from our Labour Team here at Cox yeats attended a seminar on 4 May 2017 hosted by the KwaZulu-Natal Engineering Industries Association (KZNEIA). The feedback that I received follows below. The Metal and Engineering Industry Bargaining Council (MEIBC) is a statutory body duly registered in terms of […]
State of the Nation 2017: The legislative landscape for the year ahead
The State of the Nation speech (“SoNA”) by the President of the Republic of South Africa has undoubtedly provided food for thought as well as fodder for debate. It also deserves attention as an important indicator of what changes in law can be anticipated in the coming year. A significant theme running throughout the SoNA […]
Protecting acquisitions from hiding gremlins: Warranties and Indemnities – Why and What is the Difference?
INTRODUCTION The starting point for a buyer in most transactions is the maxim ‘caveat emptor’. Even with the precaution of a thorough due diligence though, it is possible undiscovered gremlins will surface after pen has been put to paper. It is accordingly reasonable for a buyer to seek protection by negotiating appropriate warranties and […]
Referral To Court Or Counsel For An Opinion In Arbitration Proceedings
INTRODUCTION The Arbitration Act, 42 of 1965 (“the Act”), contains a provision relating to the referral of questions of law to either the court or an advocate for an opinion, which opinion is final and binding. The relevant section reads as follows: “Statement of case for opinion of Court or counsel during arbitration proceedings (1) […]
Cession of Right to Payment
INTRODUCTION Financially strapped contractors often have to resort to funding contracts and the purchase of necessary materials by raising money or buying materials on the security of a cession of the right to receive payments from the Employer. The Supreme Court of Appeal ("SCA") in March this year dealt with the validity of such cessions […]
Can The State Invoke A Defence Of “No Budget No Pay”?
This question was addressed by the Supreme Court of Appeal ("SCA") in a recent case involving the Free State Department of Police, Roads and Transport ("Roads Department"). The case also touched on the interesting question as to whether a subcontractor of the main contractor can take action against an employer to enforce payment of amounts […]
Compliance with business rescue provisions, s129
During business rescue there is a temporary moratorium on the rights of claimants against a company and its affairs are restructured through the development of a business rescue plan aimed at continuing the company in operation on a solvent basis, or if that is unattainable, leading to a better result for the company's creditors and […]
Binding Offers in Business Rescue
The phrase “binding offer” as set out in s153 of the Companies Act, 71 of 2008 (the Act) has led to much confusion and debate since the coming into operation of the Act in 2011, and there have been diverging interpretations of the phrase in different divisions of the High Court . If a business […]
Is a Final Payment Certificate Required for Final Payment?
Maykent (Pty) Ltd ("the Employer") contracted with Trackstar Trading 20 (Pty) Ltd ("the Contractor") to carry out alterations and additions to the Employer's Kentucky Fried Chicken store in Newtown, Johannesburg. Tertius Rabe Property Services CC was appointed as the Principal Agent. The agreed contract price was approximately R1,3m. The contract period was three months which […]
Land Reform – Preservation and Development of Agricultural Land or is it a form of Expropriation?
INTRODUCTION The Subdivision of Agricultural Land Act was passed in 1970 to prevent the subdivision of agricultural land into uneconomic land units. The Act provided that land, which historically fell outside the area of a municipality or town, could not be subdivided without the consent of the Minister of Agriculture. In 1998, Parliament passed a […]