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 […]
Affordability Assessment Mechanisms
AFFORDABILITY ASSESSMENT MECHANISMS TO BE CONSTRAINED From its inception, the National Credit Act 34 of 2005 (NCA) has allowed for credit providers to determine their own evaluative procedures to fulfil affordability assessment obligations. The only restriction is that the assessment must be “fair and objective”. Credit providers are thus granted a wide discretion in the […]
Hybrid Debt Instruments
WHEN INTEREST BECOMES A DIVIDEND: HYBRID DEBT INSTRUMENTS As of 1 April 2014 the Income Tax Act 58 of 1962 (the Act) was amended to regulate “hybrid debt instruments” more closely. A “hybrid debt instrument” now includes much more than it did before. This circular looks at the revised section 8F and the new section […]
BBBEE – Then and Now
This is the first of a series of circulars examining the development of Broad-Based Black Economic Empowerment (BBBEE) in South Africa. Since its inception, the concept of BBBEE and the legislative framework regulating it have evolved significantly. The purpose of this circular is to provide you with an understanding of the history of BBBEE in […]
BBBEE – Revamped
Government is well under way in implementing its plan to “revamp” Broad-Based Black Economic Empowerment (BEE) in South Africa. The recent developments in BEE law are summarised below. EFFECTIVE DATE FOR BEE AMENDMENT ACT, 46 OF 2013 The Broad-Based Black Economic Empowerment Amendment Act, 46 of 2013 (the Amendment Act) which brings about significant changes […]
BBBEE – Fronting
The Broad-Based Black Economic Empowerment Act 53 of 2003 (2003 Act) together with the generic codes of good practice and the sector codes, provide the legislative framework for Broad-Based Black Economic Empowerment (BEE) in South Africa. The Broad-Based Black Economic Empowerment Amendment Act, 46 of 2013 (the Amendment Act) which brings about significant changes to […]
The Just and Equitable Principle of Winding Up Solvent Companies
Introduction This circular will examine the principles relating to the winding up of a solvent company on the basis of what is referred to as the just and equitable principle and in particular reference to a recent decision in the Supreme Court of Appeal in the case of Thunder Cats Investments 92 (Pty) Limited and […]
Builders’ Lien and Security
Introduction Can a builder's lien be substituted with security? In other words, can an employer evict a builder who is exercising a lien over a site by providing security, say in the form of a bank guarantee, to cover the contractor's claim which is the subject matter of the lien? The Supreme Court of Appeal […]
Perseverence Pays or Pay for Perseverance?
Introduction At the beginning of this year the Supreme Court of Appeal ("SCA") dealt with a case involving the challenge to a municipal tender award in Limpopo Province. The award triggered a torturous journey for EsorFranki Pipelines (Pty) Ltd ("EsorFranki"), the aggrieved tenderer who challenged the award. Whilst EsorFranki's efforts and perseverance were eventually crowned […]