Contempt of court is a serious matter, but there are several defenses that can be raised when facing an application for contempt of court in South Africa. Understanding these defenses is crucial for anyone involved in legal proceedings to ensure their rights are protected. This article explores the various defenses available to a party accused […]

Contempt of court is a legal mechanism designed to ensure compliance with court orders and maintain the authority of the judicial system. When a party fails to comply with a court order, they may be found in contempt of court, which can result in serious consequences. This article explores the concept of contempt of court, […]

The Consumer Protection Act (CPA) significantly impacted common law regarding fixed-term rental agreements. Notably, the CPA limits fixed-term rental agreements to a maximum of two years, unless parties can demonstrate a ‘demonstrable financial benefit’ to the tenant. Landlords must provide written notice of rental termination as the rental agreement nears its end. This notice should […]

The Consumer Protection Act (CPA) plays a crucial role in safeguarding consumers’ rights. Here’s how it generally protects the consumer: Appliances and Cars: Renting Property: The CPA applies to rental agreements for immovable property (both commercial and residential). Maximum Duration: Fixed-term lease agreements are limited to two years unless there’s a “demonstrable financial benefit” for […]

Most people who launch a business together trust and know each other. They’re happy with a handshake deal and assume nothing can or will ever go wrong. In the business world this often very far from the truth – the reality is that things do go wrong. A shareholder’s agreement is a very important document […]

A shareholders’ agreement is a critical document in a private company. It outlines the rights, responsibilities, and obligations of the shareholders. One of the key aspects covered in this agreement is the valuation of shares, which determines the worth of each shareholder’s stake in the company. Importance of Share Valuation in a Shareholders’ Agreement Share […]

The Companies Act 71 of 2008 has introduced the concept of a delinquent director to hold directors accountable for their actions. Understanding Delinquent Directors A delinquent director is one who has been found guilty of serious misconduct, including gross abuse of their position, gross negligence, wilful misconduct, or breach of trust. This can include exploiting company […]

Introduction A derivative action is a unique legal mechanism that allows a shareholder to sue on behalf of a corporation. This type of lawsuit is typically brought against insiders such as directors and officers who have allegedly failed in their corporate duties. Nature and Purpose of a Derivative Action The nature of a derivative action is rooted […]

Warranties and indemnities play a crucial role in share sale agreements. They are mechanisms that ensure trust between contracting parties. This article provides an overview of warranties and indemnities in the context of share sale agreements in South Africa. Warranties A warranty is a factual statement which, if untrue, may cause the provider to be in […]

The principle of “piercing the corporate veil” is a cornerstone of corporate law in South Africa. It refers to the legal decision to treat a corporation as a mere “alter ego” of its shareholders or directors, thereby bypassing the company’s separate legal personality and holding the individuals behind it accountable. The Concept of Corporate Veil […]