South Africa: Corporate and Company Law

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Article
What's in a name: “contingent and prospective” creditors in business rescue
The Western Cape High Court has delivered a significant ruling on whether contingent and prospective creditors have standing to initiate business rescue proceedings under Chapter 6 of the Companies Act. The judgment settles on the grammatical meaning of "creditor" and clarifies the rights of sureties and subordinated debt holders in business rescue applications. This decision has important implications for lenders and creditors seeking to place debtors into business rescue proceedings.
South Africa Insolvency
CD
Cliffe Dekker Hofmeyr
Article
Tax Court Applies The GAAR To Dividend Stripping: Companies AF (Pty) Ltd And Others v C:SARS
The Tax Court in Cape Town has ruled on a dividend stripping arrangement used in the sale of a self-storage business, applying South Africa's general anti-avoidance rules to a structure where shareholders attempted to convert taxable capital gains into exempt intercompany dividends. Following the Constitutional Court's recent decision in Absa Bank Ltd v SARS, the Court examined whether a pre-acquisition dividend funded by the purchaser's subscription served any purpose beyond tax avoidance, and whether the
South Africa Tax
E
ENS
Article
Springboarding A Business: Unlawful Competition, Not Entrepreneurship
A South African court has delivered a decisive ruling on the limits of post-employment competition, finding that two senior employees unlawfully used their former employer's proprietary software, client relationships, and confidential information to launch a competing business. The judgment reinforces that fiduciary duties can extend beyond employment termination and that building a business on a former employer's investment constitutes unlawful springboarding rather than legitimate entrepreneurship.
South Africa Commercial
E
ENS
Article
When Tax Structuring Stops Being About Tax
The Constitutional Court's decision in Absa Bank Ltd v SARS marks a pivotal shift in how South African courts approach tax avoidance structures, moving beyond technical compliance to examine the true commercial substance of transactions. This judgment signals a broader regulatory trend where authorities increasingly look through carefully engineered corporate structures to ask what was really happening, challenging the long-held assumption that technical legal compliance provides immunity from scrutiny.
South Africa Commercial
Ai
Andersen in South Africa
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