The Business Judgment Rule: When is it applicable?
When running a business there are going to be times where the directors in charge will have to make difficult decisions and take risks in order to either save the company or to seal a big deal and gain financially, the notion of “risk for reward”. As a director, one would be required to make […]
Think Twice Before Using an Image from Google
In February 2018, Google made a distinctive change to their image search engine. Where previously you were able to open an image file directly from a search result, that option was removed. Naturally, this frustrated a lot of users as there was now an additional step to saving images found through the engine. Google wasn’t […]
Business Rescue vs Liquidation: What is the difference?
South Africa has been experiencing very slow economic growth and international rating agencies have subsequently downgraded South Africa’s investment outlook to “junk status”. This, and a myriad of other factors, have negatively impacted South African businesses, especially small and medium business enterprises. Many of these struggling enterprises are now at a crossroads: do they continue […]
Does force majeure apply during COVID-19
Common Law position – in absence of a “force majeure” clause A force majeure is an act of God or man (such as a war, strike, riot, crime, plague, or an event described such as a hurricane, flood, earthquake, volcanic eruption, etc.), that is unforeseeable, out of the reasonable control of the parties to a […]
COVID-19: MERGERS AND ACQUISITIONS AMIDST A GLOBAL PANDEMIC
The current COVID-19 pandemic continues to affect every aspect of society, disrupting the global economy and devastating both small and large business alike. With regard to volatile economic environment in which businesses are now operating, any decision, whether seemingly inconsequential or not, could have a potential adverse outcome and should be considered carefully. Whilst some […]
#COVID-19: TOUGH DECISIONS – BUSINESS MANAGEMENT AND THE ROLE OF DIRECTORS (PART 1)
South Africa has not escaped the damaging economic effects brought about by the global COVID-19 pandemic. The country’s already strained economy is reeling from the adverse effects of the national lockdown and anticipated phased relaxation thereof. Companies in all sectors are forced to navigate unforeseen and novel circumstances and manage their businesses in terms of […]
COVID-19: FORCE MAJEURE AND THE ACTIONS OF RESPONSIBLE CORPORATE CITIZENS
On 9 April 2020, President Cyril Ramaphosa announced the extension of the nationwide lockdown by a further two weeks. In his announcement, the President appealed to all individuals and businesses, both large and small, to act responsibly and specifically in respect of large businesses, to not resort to force majeure, stop paying their suppliers and […]
COVID-19: LANDLORD AND TENANT RELATIONSHIPS IN COMMERCIAL LEASE AGREEMENTS
The effects of the national lockdown and the progressive spread of the Coronavirus will undoubtedly continue to have a significant and long – lasting impact on both the South African and global economy, with such effects being especially prevalent in the commercial property sector. According to legal author, W.E. Cooper, a lease of an immovable […]
Understanding mergers and acquisitions
Mergers and Acquisitions (M&A) are a natural process of any business, although not all businesses go through this form of transition. Merging is when two companies combine to be one, and acquisition is where one company buys an existing one. Doing either one of these requires corporate restructuring. Smaller businesses may join to become one […]
Electronic signing of documentation
The commercial world is currently moving to greater levels of digitisation. Organisations are implementing automated and electronic solutions in an effort to improve efficiency and better the environmental footprint at the same time. The move to digitisation and electronic signatures prompted questions surrounding the legality of these documents. This article aims to highlight certain legal […]