New Tax Rules for Non-Resident Beneficiaries in South African Trusts

If you are considering naming a child who has emigrated as a beneficiary in your South African trust, recent tax law changes could significantly increase the cost of doing so. Previously, appointing a non-resident beneficiary had minimal impact on the trust’s tax position. Now, amendments to the Income Tax Act 58 of 1962, effective from […]

Piercing the Corporate Veil: When Members of a Close Corporation Can Be Held Personally Liable

In South African law, a company or close corporation exists as a separate legal entity, distinct from its shareholders or members. This principle creates the protection of limited liability, meaning that members are generally not personally responsible for the debts and obligations of the entity solely because of their ownership interest. For close corporations, this […]

When Directors Clash: The “Just and Equitable” Liquidation Route

Disputes between directors are inevitable in any business. Different perspectives and strong opinions can lead to better decision-making, provided those differences are ultimately resolved. The danger arises when disagreements escalate to the point where the board cannot function and critical decisions are delayed or abandoned. This “deadlock” can seriously damage the company’s operations, profitability, and […]