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The Companies Act imposes a raft of important duties on directors, one of which is to ensure that the company remains a going concern with adequate liquidity and solvency.
Which means that you may on occasion have to find further funding in order to satisfy the going concern test. Or perhaps you need to raise more money for a program of major expansion. Either way, one option could be to issue new shares.
Be careful though of the Act’s requirements when it comes to setting an issue price for the shares – drop the ball on this one and you could face damages claims and personal liability. We discuss the details…
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With the release of final Regulations for the Protection of Personal Information Act (“POPIA”, often referred to as “POPI”), the Act’s commencement has become imminent.
Once this happens, business will have a twelve month grace period to prepare, but don’t leave it to the last minute.
Be warned there is a mountain of work ahead! Fines of up to R10 million can be levied for failure to comply with POPIA.
Watch this space! We’ll update you once POPIA’s commencement date is gazetted.
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The concept of “the company” has historically proved to be a unique way of achieving prosperity worldwide, but it is facing serious challenges. Competition is falling, poor decision making is on the rise, innovation is being stifled, performance is weakening, and (of particular importance to us in South Africa) strong governance and ethical values are under siege.
How does that affect you? Well, on the positive side there is already a process of renewal and experimentation underway, a process which will almost certainly unleash a new wave of global growth.
That’s a wave you will want to catch!
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