Subcontracting Agreements in South Africa: Key Components for Enforceability

A well-drafted subcontracting agreement is the foundation for successful collaboration between a main contractor and a subcontractor. In South Africa, these agreements must balance clear definitions of the parties’ obligations with compliance to statutory and regulatory requirements. Getting the essentials right reduces the likelihood of disputes, ensures timely delivery, and maintains financial stability in projects […]

From Exceptional Circumstances to Grave Injustice: The New Scope of Section 17(2)(f)

The 2024 amendments to section 17(2)(f) of the Superior Courts Act 10 of 2013 have prompted an important question: can litigants still rely on this provision to seek reconsideration of a refused petition for leave to appeal? Understanding the Original Framework Under the previous wording of section 17(2)(f), a litigant whose petition to the Supreme […]

The Role of a Shareholders’ Agreement in Strengthening Corporate Governance

In today’s competitive business environment, safeguarding investor interests whether for individuals or corporate entities is critical. A robust corporate governance framework underpins trust, transparency, and sustainable growth. Such a framework sets out the rights, duties, and interactions of key stakeholders, guiding decision-making and ensuring that businesses operate in line with agreed standards and legal obligations. […]

King IV and Corporate Governance for JSE-Listed Companies

In 1992, South Africa established the King Committee on Corporate Governance to develop governance principles suited to the country’s context, while aligning with global best practices. The first King Code was introduced in 1994, and it has since undergone several revisions. Although the Code is not legally binding, it works alongside legislation such as the […]

Understanding Your Obligations as a Company Director

The Companies Act 71 of 2008 has reshaped corporate governance in South Africa. While its intention is to create a flexible framework that balances accountability and transparency with reduced regulatory red tape, it also formally incorporates long-standing common law duties of directors, providing greater clarity around their responsibilities. Definition of a Director For purposes of […]

Share Buybacks Explained: Compliance, Tax Advantages, and Risks

A share buyback (or share repurchase) occurs when a company purchases its own shares from one or more shareholders. This mechanism is used for a variety of strategic and financial reasons including providing an exit route for a departing shareholder, returning surplus capital to investors, or improving earnings per share by reducing the number of […]

The Importance of Choosing the Right Registered Office for a South African Company

When setting up a company in South Africa, entrepreneurs often focus on shareholding, directorships, and operational matters but overlook one critical detail: the registered office. Also known as the registered address, this location plays a more significant role than many realise. All too often, businesses simply choose a convenient address without considering the legal implications […]

Appealability of Exceptions and the Supreme Court of Appeal’s approach

In South African civil procedure, a consistent principle applies to exceptions: when a court upholds an exception, that ruling is generally appealable. Conversely, where an exception is dismissed, it typically is not appealable at that stage. This distinction exists because the issues raised in a dismissed exception can still be reargued during trial proceedings. This […]

The High Cost of Ambiguity: Lessons from the Phadziri Case on Contract Clarity

In South Africa’s dynamic commercial landscape, the precision with which contracts are drafted can make or break a business relationship. Unclear terms or omissions often become the seeds of costly litigation, as evidenced by the Supreme Court of Appeal’s decision in G Phadziri & Sons (Pty) Ltd v Do Light Transport (Pty) Ltd and Another […]