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As a result of governmental and voluntary restrictions imposed to mitigate the impact of COVID-19, South African businesses are facing liquidity constraints in the short to medium term.
In accordance with the JSE Listings Requirements (Requirements), there are various shareholder decisions which may only be voted on at an “in person” general meeting of shareholders. Notably, a decision to issue shares for cash must be voted on at an actual meeting, and may not be voted on in writing. Owing to the lockdown in South Africa and the need for social distancing, physical shareholder meetings are off the table for the time being.
Notwithstanding a positive credit analysis at the onset, occasionally businesses or projects are unsuccessful and this sometimes leads to liquidation.
On 31 March 2020, the Financial Sector Conduct Authority issued FAIS Notice 17 of 2020 which provides an exemption from and extension of the period to comply with certain fit and proper requirements including in particular, continuous professional development requirements and regulatory examination requirements.
Paragraph 38 of the Eighth Schedule to the Income Tax Act, 1962 (Act) indicates that transactions between connected persons are deemed to take place at arm’s length. In other words, assets are disposed of at market value by the seller and deemed to have been acquired at market value by the purchaser.
The long awaited Price Discrimination and Buyer Power Regulations (Regulations) were published for comment on 10 October 2019 by the Minister of Trade and Industry, Mr Ebrahim Patel. Comments to the Regulations are required to be submitted within 28 days from publication. The closing date for submissions is 7 November 2019.
Preference share funding structures contemplate the subscription by a funder for preference shares in the share capital of a company with a pre-agreed dividend rate (often linked to a prevailing interest rate) and capital redemption profile.
Minority shareholders are often faced with the challenge of entrenching their rights in a company and making sure their voices are heard.
South Africa’s newly-minted head of state, President Cyril Matamela Ramaphosa, has won wide acclaim for securing billions of dollars in foreign direct investment in the aftermath of a resoundingly successful international road show that he and his team embarked upon.
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