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 […]
A Taxing Problem in Procurement
Introduction Our courts have in their recent pronouncements on public procurement processes started to emphasise the importance of tenderers complying with the tender rules laid down by organs of State. The motivation for this is probably to try and create a more certain climate around procurement and also to try and stem the flood of […]
New Laws Expected For Use of Temporary Staff
As we enter 2014, and in an effort to keep our clients appraised of current developments within the industrial legal landscape, the Labour Team has undertaken to supply regular updates to clients, as and when there appears to be a need to do so. Arising from developments at the tail-end of 2013, and at the […]
Are Acceleration Clauses Contrary To Public Policy?
A court ruling by Cape Town Judge Dennis Davis in the case of Combined Developers v Arun Holdings & Others (6105/2013) [2013] ZAWCHC 132 has raised concern for financial lenders across the country as to the validity of acceleration clauses in loan agreements. Acceleration clauses provide comfort to lenders, affording them the right to call […]
Companies Act – Personal Finance Interests
This is the first of a few circulars examining directors’ duties under the Companies Act (the Act). Prior to the commencement of the Act and in terms of sections 234 to 238 of the old Companies Act, directors, managers, the managing director and the secretary of a company were obliged to disclose their direct or […]