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In Antitrust / Competition

South Africa: The new subsection 45 (2A) of the Companies Act – Striking the right balance

by , and 2 Mins Read

On 26 July 2024, President Cyril Ramaphosa signed into law the Companies Amendment Bill and the Companies Second Amendment Bill, introducing significant changes to the Companies Act 71 of 2008. Effective from 27 December 2024, one key change is the new subsection 45(2A), which exempts financial assistance provided by a company to its subsidiaries from the stringent requirements of section 45. This amendment aims to reduce the compliance burden and enhance business flexibility by eliminating the need for shareholder approval and the solvency and liquidity test for such financial assistance.

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In Cybersecurity, Data and Tech

Belgium transposes the EU’s Corporate Sustainability Reporting Directive into national law

by , , and 2 Mins Read

The proposed amendments to the Consumer Protection Act Regulations in South Africa aim to enhance consumer privacy by regulating direct marketing practices. Open for public comment until 15 January 2025, these changes focus on creating an opt-out registry managed by the National Consumer Commission, allowing consumers to block unsolicited electronic communications. Direct marketers will be required to register, renew annually, and cleanse their databases regularly to comply with the new rules. The amendments also introduce enforcement mechanisms for non-compliance and align with the Protection of Personal Information Act, ensuring comprehensive consumer protection against unwanted marketing.

In Corporate Compliance

South Africa: Companies Amendment Bills signed into law

by and 2 Mins Read

President Cyril Ramaphosa signed the Companies Amendment Bill and the Second Amendment Bill (collectively, “Bills”) into law on 26 July 2024. As of 29 July 2024, the Bills have yet to be gazetted and there is no clarity yet as to their anticipated effective date. Once effective, the Bills are expected to have an immediate impact on doing business in South Africa.

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In Employment

South Africa: Clarity for employers on appropriate intervention in employee’s home cannabis use

by 4 Mins Read

The Labour Appeal Court in South Africa recently clarified for employers the situation in which their employees’ cannabis use at home becomes applicable to their roles at work. In Enever v. Barloworld Equipment South Africa, a Division of Barloworld South Africa, the LAC ordered the employer to reinstate and pay over ZAR 1 million in backpay to an employee dismissed for repeatedly testing positive for cannabis use. The judgment reiterates the requirement of rationality where employers seek to limit an employee’s private conduct

In Antitrust / Competition

South Africa: Increasing competition in the electricity market – Electricity Regulation Bill

by and 4 Mins Read

The National Council of Provinces in South Africa has passed the Electricity Regulation Amendment Bill, which aims to provide for increased electricity generation capacity and additional infrastructure in South Africa. It also establishes the duties, powers and functions of the Transmission System Operator and introduces an open-market platform for the competitive trading of electricity.

In Employment

South Africa: The endemic abuse of so-called ‘medical certificates’

by 3 Mins Read

The pandemic of medical certificate abuse is rife in both the public and private sectors, with many labor court cases in South Africa having decided that forging a sick note constitutes serious misconduct. A recent case of sick leave abuse in South Africa that found its way to the Labor Appeal Court again confirmed that an employer’s zero-tolerance approach to dishonesty and fraud was correct and that employees who are dishonest in their timekeeping practices will likely have a bitter pill to swallow when their actions are revealed.

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In Employment

South Africa: The right to freely participate in society

by 4 Mins Read

In the case concerning a matter of unfair discrimination under the Employment Equity Act, the South African Labor Court ruled that, in this instance, the refusal to employ a job applicant because of their criminal history was unfair discrimination based on arbitrary grounds. This case serves as a reminder to employers that statutory protection against unfair discrimination also applies to employment applicants, and that there are risks in the rote reliance on factors used to select or reject staff.

In Corporate Compliance

South Africa: Important CIPC notices for companies and close corporations

by and 7 Mins Read

The Companies and Intellectual Property Commission (CIPC) has issued several notifications that are of high importance to businesses with operations in South Africa.
The notifications concern:
• A security compromise as per section 22 of the Protection of Personal Information Act (2013)
• Processes regarding the proof of physical address of companies and close corporations in South Africa
• More information concerning the Annual Return Deregistration Process of Companies and Close Corporations
• Details of the delays expected in processing company and close corporation re-instatement applications and responding to enquiries
• Information concerning the Beneficial Ownership Reviewer System
• Details regarding integration of the Foreigner Assurance Process with Beneficial Ownership.

In AML & Financial Services Regulatory

Africa: The African Continental Free Trade Area Investment Protocol – The start of a new era in sustainable trade and investment

by and 7 Mins Read

The African Continental Free Trade Area (AfCFTA) is expected to boost intra-African trade by more than 81 percent in the next decade. To ensure such advantages are obtained, a number of AfCFTA Protocols have been developed to facilitate sustainable investment and harmonize policy and regulations across African Union member states, including a Protocol on Investment. The Investment Protocol provides the continent with a clear set of guidelines and principles to expedite financing and investment across the continent’s new free trade zone. With trade finance considered a critical enabler of cross-border investment in Africa, the Investment Protocol is also assisting development finance institutions, increasingly important in bridging Africa’s trade finance gap, to more seamlessly support such investment.

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