The Supreme Court of Appeal in South Africa recently considered the concept of claims for reflective losses in South Africa, focusing on whether shareholders could hold directors liable, in terms of the Companies Act, 71 of 2008, for conduct which resulted in a decrease in the company’s share price. John Bell, Partner, Rui Lopes, Associate, and Nothando Mthimkhulu, Candidate Attorney, in the Dispute Resolution Practice at Baker McKenzie in Johannesburg, explain the details and outcome of this case.

The Coronavirus (COVID-19) has resulted in mass production shutdowns and supply chain disruptions due to port closures in China, causing global ripple effects across all economic sectors in a rare “twin supply-demand shock”. With South Africa having just reported its first cases of COVID-19, Africa is beginning to feel its…

The High Court in Hlumisa Investment Holdings (RF) Limited and Another v Kirkins and Others (Hlumisa judgment), was recently tasked with considering whether shareholders are empowered to hold directors liable, in terms of section 218(2) of the Companies Act, 71 of 2008 (Companies Act), for conduct which results in a…