The pitfalls of using artificial intelligence to draft legal agreements
Advancements in AI are bringing about transformation across most industries, including the legal profession. While AI is a useful tool in legal research, it has not quite mastered the art of contract drafting. Below, I set out the reasons why you should not be relying on AI (or online templates, for that matter) to draft […]
Changes to South African Patent Law
South Africa is entering a pivotal phase in the reform of its intellectual property laws, with the Department of Trade, Industry and Competition (dtic) and the Companies and Intellectual Property Commission (CIPC) progressing new Patents and Designs Amendment Bills. The changes are intended to modernise the country’s outdated registration-based system and align it with international […]
No Reasons Required for Removal of a Director by Ordinary Shareholder Resolution
Under current South African case law, shareholders who remove a director under section 71(1) of the Companies Act 71 of 2008 are not legally required to provide reasons for the removal. Section 71(1) of the Companies Act allows shareholders to remove a director by passing an ordinary resolution at a shareholders’ meeting. Section 71(2) […]
Extended Run-Off Insurance for Directors Recommended (in light of Companies Act Amendments)
The Companies Second Amendment Act 17 of 2024, which came into effect in December 2024, has introduced significant changes to sections 77 and 162 of the Companies Act, 2008. These amendments have far-reaching implications for directors of South African companies, especially concerning their personal liability and the duration of legal exposure after they leave office. […]
PAIA Annual Report Submission Reminder
It’s that time of year again, all private bodies in South Africa are required to submit their annual PAIA (Promotion of Access to Information Act) reports to the Information Regulator. This reporting period opened on 1 April 2025, and the final deadline is 30 June 2025. This annual obligation helps the Information Regulator monitor compliance […]
Companies Act Amendments and the Amended Effective Date for New MOIs or MOI Amendments
Various amendments to the Companies Act (Act 71 of 2008) came into effect on 27 December 2024. These amendments were contained in the Companies Amendment Act (Act 16 of 2024) and in the Companies Second Amendment Act (Act 17 of 2024). One of these amendments was to section s16(9)(b). This section describes when an amendment […]
Guidance Note on Direct Marketing
On the 3rd of December 2024 the Information Regulator published a Guidance Note on Direct Marketing (“the note”). The note essentially expanded the definition of electronic communications to include voice and sound messages including automated voice messages. This in turn expanded the ambit of what the rules on direct marketing applied to in the context […]
Companies Act Amendments To Share Buy Backs, Resulting In Potential MOI Amendments
Various amendments to the Companies Act (Act 71 of 2008) came into effect on 27 December 2024. These amendments were contained in the Companies Amendment Act (Act 16 of 2024) and in the Companies Second Amendment Act (Act 17 of 2024). As a result of the amendments made to section 48(8), which governs share buy […]
Minister Parks Tau Approves The Legal Sector Code In Terms of Section 9(1) of The B-BBEE Act
UPDATE: The B-BBEE Legal Sector Code is now in effect! Gazetted on 20 September 2024, the B-BBEE Legal Sector Code takes effect immediately. You can access a copy of the Codes here. Our B-BBEE specialist consultant is available to assist clients with interpreting and applying the new Codes. To address some immediate concerns: • Existing […]
The Company That Owes Me Money Has Been Liquidated, Now What?
Commissions of Enquiry as set out in Sections 415 and 417/418 of the Companies Act serve as a vital tool for unveiling and unravelling possible misconduct or mismanagement within a company, prior to liquidation. Through these enquiries, a liquidator or creditor can confidentially gather crucial information essential for winding up the company’s affairs, which may […]