News & Articles
Shining success in pivotal IT sector merger
In a landmark transaction that promises to redefine the landscape of South Africa’s information technology and telecommunications sector, the M&A Team of PH Attorneys played a crucial role in facilitating the acquisition of a leading cyber security software firm by a multinational enterprise software procurement company. This deal not only marks a significant milestone for both firms involved but also holds implications for the broader African market.
Suretyship vs Guarantee. What’s the difference?
In this article, we look at two primary forms of security commonly found in financial transactions, namely suretyship agreements and guarantees, and explain the difference between these two forms of security.
Leave to Appeal vs Special Leave to Appeal
On 4 April 2024 in the matter of Savannah Country Estate Homeowners Association v Zero Plus Trading 194 (Pty) Ltd and Others (773/2022) [2024] ZASCA 40, our Supreme Court of Appeal (“SCA”) had to address the important difference between an application for leave to appeal and an application for special leave to appeal. In this article, we analyse the SCA’s views in this regard.
Can a sheriff demand a deposit before executing its work?
In this article, we look at recent case law which answers the question of whether or not a sheriff can demand a deposit before executing certain court processes.
Can Landlords unilaterally charge for additional services?
The relationship between landlord and tenant can be a complex one fraught with dangers for a careless landlord. In this article, we explore whether a landlord can provide additional value-added services to its tenants beyond the scope of what is outlined in the lease agreement and then unilaterally charge extra for such services or remove existing services without consequence.
Social media vulnerability: A headache for employers?
Personal information has become the currency of the digital economy. Despite growing awareness of the importance of protecting one’s right to privacy, many people find themselves sharing, providing, conveying and divulging information across multiple platforms and devices as part of their daily ritual of engaging, trading and communicating with others. Unfortunately, it is exactly this carefree mindset which plays into the hands of lurking cybercriminals and can also impact employers.
Personal device use – a red flag for cybersecurity
With Covid-19 having fast-tracked the remote and hybrid working model in many businesses, these flexible methods of work have also increased the scope for employees to use their personal devices to work and remain engaged with their clients and employer. As beneficial as this is for employees and employers, it is not without risk. In this article, we look at personal device use and the potential impact this may have on the cybersecurity environment of a business.
Why dispute resolution provisions matter in contracts
No one enters into marriage anticipating divorce. Similarly, when parties negotiate and conclude a commercial contract, the last thing on their minds is a dispute that may arise in future. However, just as divorce happens, so contractual disputes are commonplace. Selecting suitable dispute resolution mechanisms in your contract is therefore crucial to navigating any future disputes. In this article, we touch on various dispute resolution mechanisms available to parties involved in commercial contracts.
The importance of securing your social media account
With social media and online platforms driving sales, client engagement and marketing in many businesses, it is small wonder that cybercriminals are increasingly targeting social media and other accounts of businesses. In this article we look at some of the risks businesses may face and basic steps a business can take to make their social media accounts safer.
South Africa: Practical guidelines in applying for prior authorisation in terms of POPIA
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Putting ethics and social responsibility back into corporate governance
The King IV Report published in 2016 (“King IV”) remains essential to understanding the concept of good corporate governance in South Africa. In today’s times when the media is littered with disreputable reporting and inefficient governance, it is worthwhile to perhaps circle back to King IV and what it holds out as the standard for entities to ensure their corporate governance is ‘above board’.
Blazing changes in the National Veld and Forest Fire Amendment Bill
In early April 2024, President Cyril Ramaphosa signed the National Veld and Forest Fire Amendment Bill. It is important for the public at large, and more specifically, Organs of State and Municipalities, to take heed of this important amendment.
Three’s a crowd? SARS, Trusts and Beneficial Ownership
The General Laws Amendment Act 22 of 2022 (“Amendment Act”) promulgated as part of legislative framework changes by South Africa to curb money laundering, has introduced key changes to the trust environment, requiring extensive beneficial ownership and other reporting by trusts. SARS is also aligning its tax and data collection imperative with these changes by requiring similar reporting as part of trust tax submissions. In this article, we review the impact of these changes on trusts.
Is the trust dead? Long live the trust!
Many clients, when we suggest using a trust for their estate or corporate structuring, enquire whether a trust is still a safe option to consider. This question likely stems from the negative publicity trusts have received over the last few years, along with the high taxation imposed by SARS. However, our answer is always the same, if used correctly and for the right purpose, then ‘Yes’, a trust is still a good option to be considered. In this article, we explain why we still consider a trust to be relevant.
Income Tax Act: Keep an eye on the definition of ‘exchange item’
In the recent 2024 National Budget speech, Finance Minister Enoch Godongwana made mention of a possible change to the definition of an “exchange item” for determining taxable exchange gains given that certain financial arrangements are eroding the tax base due to a mismatch in exchange losses and gains when it comes to taxable income.
Tax collection efficiency trumps wealth taxes in the short-term
Speculation surrounding the introduction of formal wealth taxes in South Africa has subsided for the time being. The South African Revenue Service (SARS) appears to have reconciled itself to the recommendations outlined in the “Feasibility of a Wealth Tax in South Africa” Report by the Davis Committee, which underscores deficiencies in wealth information and tax collection as requiring attention and not necessarily additional ‘wealth taxes’ in the short-term. SARS’s intensified focus on collecting clearly indicates its intentions to address this information and tax compliance gap.
Is a global corporate minimum tax the death knell for offshore structuring?
Despite uncertainties surrounding global tax reforms, no additional restrictions on exchange control have been proposed in South Africa during the 2024 National budget speech. However, amidst this positive news, concerns linger among taxpayers regarding the introduction of a new effective minimum tax rate of 15% on multinational corporations, sparking questions about its impact on offshore structuring and international estate planning structures, as well as the continuing effectiveness of low tax jurisdictions also known as financial centres. This article delves into the implications of these developments specifically offshore structuring and estate planning strategies.
2024 National Budget tax proposals? Uneventful… or are sharks lurking…?
The 2024 National Budget did not provide any major tax surprises, but key observations reveal subtle strategies by SARS to increase revenue. While the budget seemed rather vanilla, it is vital to recognise these hidden strategies and measures that can impact taxpayers’ liabilities. In this article, we look at these strategies and measures.
A how-to-guide for M&A transactions
A merger or acquisition (M&A) can be a complex transaction that can be effected in a number of ways depending on the nature of the transaction as well as the scope and intent of the parties. In this article, we look at some of the most common methods for affecting an M&A.
Alignment or misalignment? The BEE Commission, the Competition Commission and M&A
As much as M&A transactions are a part of our economic landscape and vital to economic growth and investment in South Africa, there remains a vital balance been economic growth and addressing historical disparities and increasing the participation of previously disadvantaged in the economy. To regulate and align these objectives, the Competition Commission and BEE Commission play pivotal roles. But, do their functions complement each other? In this article, we investigate how their respective functions and mandates align (or not) in respect of the South African M&A environment.
Private vs Listed Company M&A Transactions
Mergers and Acquisitions (“M&A”) are a pivotal part of South Africa’s growing and developing corporate landscape. There are however some unique differences when dealing with private or listed company M&As. In this article, we look at some of the more distinctive traits and considerations associated with M&A transactions in these two sectors in South Africa.
Relationship triangle between M&A, BEE and Foreign Entities
The Merger & Acquisition (M&A) landscape in South Africa does not only consider competition within the South African market but also considers the impact M&A transactions may have on historically disadvantaged people as regulated by the Broad-Based Black Economic Empowerment Act 53 of 2003 (“BEE Act”). In this article, we look at the relationship triangle between M&A transactions, the requirements of the BEE Act, and its impact on foreign entities wishing to invest in South Africa through an M&A.
Good Housekeeping: Preparing for an M&A
When a company is considering a Merger or Acquisition transaction (M&A), it is vital that the correct preparation is done for the transaction using what we call good ‘housekeeping’ practices. In this article we take a look at these housekeeping practices and why they are important in the run-up to an M&A.
Merger & Acquisitions: Why they fail?
Mergers and Acquisitions (M&A) are intricate commercial transactions that hold huge potential for economic growth, investment, job creation and increased market competitiveness. Yet, their complexity can also be their undoing. In this article, we take a look at some of the main pitfalls and issues in South Africa that result in unsuccessful M&As or M&As that don’t live up to their expectations.
Can a Homeowners Association take over refuse removal from a local authority?
With many local authorities struggling to provide municipal services to residents, a key question that arose in a recent case was whether a Homeowners Association was entitled to take over the function of refuse removal from the local authority and whether the local authority was still entitled to charge for refuse removal.
What to expect from the new draft Employment Equity Act Regulations
The Employment Equity Amendment Act 4 of 2022 (“Amendment Act”) was introduced in April 2023 but the commencement date has yet to be promulgated. To address the sectoral numerical targets provided for in the Amendment Act, new draft regulations were issued for comment on 1 February 2024 (“Draft Regulations”). In this article we take a look at the draft regulations and what they mean for employers.
To click or to ink? Are electronically signed sale of property agreements valid in SA?
In the current digital era, the use of electronic signatures has substantially increased, reshaping traditional practices with their convenience and efficiency. From large corporations to small businesses, organizations are embracing electronic signatures to streamline processes and adapt to a digital business landscape. This article explores the validity of electronic signatures and specifically how it affects the validity of a sale of property agreement.
Safeguarding your legacy for your children
For any parent, the question of how to protect and provide for their children after their passing is a burning concern that arises long before the first child is born. In this article, we explore how parents can safeguard their legacy for their children.
How liable is an owner for damage caused by animals?
One has often read about owners being held liable for a dog attack on a person, but what about an animal on the road which ends up causing an accident? Can the owner be held liable for the resulting damage?
A litigant’s right to a fair trial and a lost trial record
In a recent matter, Muravha v Minister of Police (179/2022) [2024] ZASCA 11 (30 January 2024), where we were fortunate enough to act as the local correspondent in the Supreme Court of Appeal, the Court had to decide on exactly this issue.