Business continuity

Posted on 1 of February, 2017 by in Business

Business continuity Business continuity is something that needs to be deliberated on a continuing basis by all organisations. Disruption and the rapid changes in virtually every area of human endeavour directly impacts on the continued relevance of organisations. Succession planning Key leaders in organisations are unfortunately just as mortal, and as prone to leave for […]

Removing directors of a company

Posted on 12 of October, 2016 by in Business

The Companies Act, 71 of 2008, requires that the business and affairs of any company be managed by or under the direction of its board, which has the authority to exercise all of the powers and perform any of the functions of the company, except to the extent that the Companies Act or the company’s […]

Personal service companies

Natural person taxpayers who earns a salary have very few items of expenditure available to them which they may deduct for income tax purposes (section 23(m) of the Income Tax Act, 58 of 1962). Generally, the deductions which salaried individuals may claim for income tax purposes are limited to amongst others contributions to retirement type […]

The Companies Act’s solvency and liquidity test

Posted on 25 of July, 2016 by in Business

The solvency and liquidity test in section 4 of the Companies Act, 71 of 2008, presents arguably one of the most important requirements of that Act. Without a company satisfying this test, it company cannot declare dividends, cannot provide loans and other forms of financial assistance to directors or to prospective shareholders to enable the […]

Misuse of assessed losses

Posted on 17 of June, 2016 by in Business

An assessed loss for income tax purposes is a potentially valuable asset: it represents past losses made by a taxpayer which is able of being carried forward to subsequent tax years against which future taxable profits are able of being set off. The set-off of historic losses – in the form of an assessed loss […]

Minutes of board meetings

Posted on 23 of March, 2016 by in Business

Board meetings and the decisions made during these meetings may be determining for the effective functioning of a company. Clients are therefore reminded of the legal requirements relating to board meetings as stipulated in Article 73(6), (7) and (8) of the Companies Act 71 of 2008, which should be strictly adhered to. The Act requires […]