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The Rights of Employees and Trade Unions during a Business Rescue

Business rescue is regulated by the Companies Act, 71 of 2008 (‘Act’). One of the purposes of this regulation is to protect the rights of employees as well as to grant employees’ specific rights during the business rescue process. As such, employees and trade unions are considered as being vitally important stakeholders in the business […]

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Directors’ Duties when considering Business Rescue

Companies are regulated in terms of the Companies Act 71 of 2008 “the Act”. This article focuses on the personal liability of directors of companies when considering placing the company into business rescue. According to section 77(3)(b), of the Act, a director of a company is liable for any loss, damages or costs sustained by the company as a direct […]

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Business Rescue vs Liquidation: What is The Difference?

South Africa has been experiencing very slow economic growth which impacts on the investment outlook that international rating agencies has on the country. As of May 2021, Moody’s currently rates South Africa at Ba2 (two rungs below investment grade), with a negative outlook This, and a myriad of other factors, have negatively impacted South African […]

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The Fundamentals of a Business Rescue

There is no denying that the South African economy, as with the rest of the global markets, has been severely impacted by the COVID19 pandemic, which was exacerbated by South Africa’s ensuing economic downgrade to junk status. Many distressed company owners are probably lying awake at night, contemplating how their businesses will continue to remain […]

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Tax Consequences – What Constitutes a Dividend

What constitutes a dividend? Although there are several exclusions to the general rule, South Africa applies a withholding tax on dividends declared by companies at a rate of 20%. It is essential to appreciate that such a withholding obligation for companies do not arise only on “ordinary” dividends but that the concept of what constitutes a dividend, goes much […]

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R&D Provides Great Tax Incentives

R&D Provides Great Tax Incentives, But that’s only one benefit Google, Tesla, Apple … These are all companies that we associate with innovation and technological advancement. Of course, we know that the developments that they make in the world of business come down to tons of research and development (R&D). With all the resources at their disposal, they […]

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Tax Consequences – Buying Out A Shareholder

Buying out Shareholders We are often approached by clients to advise on the most tax efficient manner in which a shareholder can sell an investment in a private company. Typically, the parties involve a majority shareholder of a company that is interested in buying out the minority shareholders in the company. In essence, two options […]

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Business to Business Agreements The Questions You Need to Ask

Your business success relies on your interaction with clients or customers and other businesses. Your profit is directly proportional to the behaviour of these external role-players. Dealing with individual clients or customers does come with some risk – especially if you offer a line of credit. However, your agreements with other businesses, in which greater risk and sums are applicable, you cannot afford […]

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Compartmentalizing your distress is risky business

Effective financial management underpins the success of any company, regardless of its size. Unfortunately, many business owners are so focused on this growth that they fail to recognise the need for their accounting processes and systems to evolve with the increasing business. Despite the best intentions, this can be a contributing factor towards the company […]

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Considerations for a better customer’s experience

There is a little tip to the success of every business that many people disregard: Customers are vital to the success of your business. Of course, you knew that already. However, converting leads into sales is just one part in the grand puzzle of sustainability in your business. Take a moment to think about your business and its clients, and ask yourself […]

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