corporate and commercial law

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NEW ACT ENCOURAGES FOREIGN ENTITIES TO ESTABLISH A LEGAL PRESENCE IN SA - BY PRIYESH MODI
Tuesday, November 08, 2011
In terms of s 23 of the Companies Act 71 of 2008 (the Act), companies incorporated in jurisdictions outside South Africa are required to register as external companies with the Companies and Intellectual Property Commission (CIPC) within 20 business days of starting to conduct business in South Africa. Failure to register as an external company within three months of commencing business or non-profit activities in South Africa could result in the CIPC issuing a compliance notice to the foreign company requiring it to register within 20 business days of receipt of the notice. Alternatively, if it fails to register within this time, the CIPC may require the foreign company to cease carrying on business or activities in South Africa.

FISCAL STABILITY AGREEMENTS OFFER PROTECTION AGAINST INCREASES IN MINING ROYALTIES - BY BETSIE STRYDOM
Friday, March 04, 2011
Among all the comments surrounding the commencement of mining royalties, few have considered that there is no guarantee that mining royalties will remain capped at 5% and 7% in South Africa. The Mineral and Petroleum Resources Development (MPRD) Act 28 of 2002 allows the State, as custodian of South Africa’s mineral and petroleum resources, to impose royalties on the transfer of mineral resources.

MUCH MORE TO A NAME THAN MEETS THE CONSUMER PROTECTION ACT'S EYE - BY LIVIA DYER
Monday, September 20, 2010
The Consumer Protection Act, 2008 (CPA) will, in due course, introduce new requirements for business names that may affect the way in which businesses trade at present.

GETTING TO GRIPS WITH THE NEW COMPANIES ACT
Thursday, September 16, 2010
The new Companies Act, ("the new Act") ushers in a new era of company law and when it eventually comes into effect, it will, as can be expected, give rise to a fair amount of confusion about the implications for existing companies. To some degree, this confusion should be resolved when the draft Companies Amendment Bill, 2010 ("the Bill") is promulgated but many areas of uncertainty remain. Bearing this in mind, directors should be aware of certain major changes introduced in the new Act as they get to grips with its provisions.

NOWHERE TO HIDE FROM COMPETITION AUTHORITIES - BY GOMOLEMO KEKESI
Monday, June 28, 2010
Certain legislation authorises companies to engage in certain conduct. However, not even authorisation of a particular conduct by regulation places a firm beyond the competition authorities’ reach. If such conduct is potentially anti-competitive, the competition authorities have the power to scrutinise it.

THE EROSION OF THE FRANCHISE MODEL: COMPETITION AUTHORITIES’ PROHIBITION ON RESALE PRICE MAINTENANCE - BY KERRY KOPKE
Thursday, May 27, 2010
South Africa’s competition authorities are threatening to undermine the very essence of the nation’s highly successful franchise business model. The franchise business model is a popular vehicle for opening up markets for small and medium businesses. Not only does the model help create jobs; it is also an efficient method for distribution of goods.

COMPETITION LAW COMPLIANCE PROGRAMME AN ESSENTIAL CORPORATE STRATEGY - BY PAULA YOUENS AND KERRY KOPKE
Thursday, May 27, 2010
It is hardly a secret that many large, well-known, South African companies have been engaged in cartel behaviour over the past few years. Nor is it a secret that the competition authorities have imposed substantial financial penalties upon cartel participants. Such penalties – of up to 10% of annual turnover in South Africa and exports from South Africa during the company’s preceding financial year—can extend to many millions of rands.

BUSINESS SECTOR MUST BRACE ITSELF FOR MORE ONEROUS MERGER FILING REQUIREMENTS - BY LENJA JANSEN
Thursday, May 27, 2010
Merger filing requirements, ever a complex process, have just become yet more onerous – and confusing. On 30 March 2010, the Competition Commission issued its first practice note on complete merger filing requirements with the aim of providing guidance on preparing a complete merger filing.

BALANCING A RESPONDENT’S FAIR TRIAL RIGHTS WITH PRESERVING THE INTEGRITY OF THE COMPETITION COMMISSION’S INVESTIGATIVE PROCESS - BY NOMBULELO BEAUCHAMP
Thursday, May 27, 2010
In specific circumstances the Competition Commission (“the Commission”) restricts access to its full record by claiming litigation privilege over certain documents. Without access to the complete Commission investigation record, would respondents’ fair hearing rights be compromised, and if so, would this constitute undue encroachment on the respondents’ ability to meet a case made against them. In contrast, would unrestricted access to the Commission’s investigation notes have a chilling effect on the investigative process?

MERGER DECISION: MASSMART HOLDINGS LIMITED AND FINRO ENTERPRISES - BY MARYANNE ANGUMUTHOO
Thursday, May 27, 2010
In the context of a horizontal merger, a substantial lessening of competition cannot be inferred from the fact that a market is highly concentrated or the fact that a significant increase in concentration will result post-merger, where that market is substantially differentiated; having regard to differences in market characteristics including the product range and mix, customer profiles, and overall prices achieved by the merger parties.

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• Consumer Protection Act
• Proposed Labour Law Amendments
• New Companies Act
• NHI