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Filter: Shares
When must a director disclose a financial interest?

08 February 2022,  Millisanté de Wee

Being a director in a company does not necessarily stop you from holding shares in other companies. However, should your company transact with another company in which you have a shareholding stake and from which you could potentially benefit, it becomes important that you disclose such financial interest to your co-directors, even if you can’t influence the transaction.

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1650
Article
Share buyback? Possible, but take care!

15 November 2021

I’m a shareholder in a private company and wish to get rid of my shares to free up some cashflow. That said, I don’t want to sell to a stranger and my other shareholders don’t want to buy my shares either. One of them suggested that the company buy back my shares. Is this allowed?

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192
Article
Phantom share schemes – a very real option for incentivising your key staff

20 May 2021,  Mulalo Mokgoro

Our family owns a very successful agriculture company that has been built up over the years by our family. We have a number of employees that have also shown their value to the business and we would like to retain and reward them by giving them shares in the business. However, we feel strongly about the family nature of our business and don’t want a large number of shareholders with accompanying shareholder rights we have to involve in every decision. Is this possible to achieve?

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161
Article
Preference shares drawing attention from the Receiver

10 November 2020,  Candice Reynders

The Minister of Finance has recently published proposed amendments to section 7C of the Income Tax Act 58 of 1962. The proposed amendments to section 7C target not only loan-based solutions, which was the original intention of the provision, but also corporate estates that make use of preference share structures.

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120
Article
The rights of a dissenting shareholder in a scheme of arrangement

10 November 2020,  Herman du Randt

I’m a minority shareholder in a company that has been approached by a buyer willing to buy out all the shareholders. Because of Covid-19 the company has suffered financially and I know that the shareholders holding more than 75% of the company will want to accept the offer even though I believe it to be far below the market value of the shares. Is there any remedy at my disposal?

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142
Article
Minority shareholder rights in a private company

12 October 2020

I hold 20% shares in a private company that I bought into a few years ago. The majority shareholders heavily influence the directors who take decisions which in my view is not always in the best interests of the company or my own as a minority shareholder in the company. What remedies are available to me?

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135
Article
Validity of lock-in provisions in BEE transactions

11 September 2020,  Johnny Davis

A few years ago, our company entered into a BEE transaction with BEE partners to address our ownership. In the transaction documents, restrictions were imposed on the BEE partners that they could not sell or encumber their shares for a period of at least ten years. These lock-in provisions were a necessary part of the financing and overall transaction. With the current difficult economic times, our partners want to sell a portion of their shares and are disputing the validity of our lock-in prov...

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152
Article
The liability of company directors for decreases in a company’s share price

11 November 2019,  Damian Viviers

I’m the only shareholder in my company, a cleaning products business. I have two directors who run the business for me. I’ve been building up the business over the years with a view to selling it as my retirement plan. However, the auditors have just informed me that the shares, in my mind worth about R10 million are now worth no more than about R3 million because of reckless management by the directors, selling of assets and even falsifying financial information and accounts. The ne...

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120
Article
Are shares excluded from my estate’s accrual?

16 October 2019,  Brady Mac Pherson

I’m married out of community with the accrual system. I specifically excluded my share portfolio from my accrual in the antenuptial contract when we got married. Recently when reviewing my estate planning the question came up whether new shares that I acquired after we got married was also excluded for purposes of an accrual calculation. What is the position here?

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133
Article

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