The A-Z of POPI compliance

The Protection of Personal Information (POPI) Act came into full effect on the 1st of July 2021. If you still haven’t implemented your POPI compliance strategy, it is strongly advisable that you take quick and decisive steps to do so as non-compliance could carry hefty penalties. To ensure that you get your (POPI) act together, we’ve put together a handy list of A-Z* terms that you …

Knowing your keyboard shortcuts could save a lot of time

South Africa ranks among the countries with the longest average working hours per week. The average worker in South Africa works approximately 42.5 hours per week (or 8.5 hours a day) according to findings by the University of Oxford. For employers who have to multitask and focus on various tasks in rapid succession, cutting out wasted time is crucial. Not only is it important to ensure that …

The POPI Act is about more than just adding new rules

The right to privacy is enshrined in Section 14 of South Africa’s Constitution and we understand it to be a vital human right. It states: “Everyone has the right to privacy, which includes the right not to have – (a) their person or home searched; (b) their property searched; (c) their possessions seized; (d) the privacy of their communications infringed.” It’s the last part …

Audit and review requirements

The Companies Act No 71 of 2008 (“the Act”) has made provision for significant changes for companies with regards to the requirement to be audited or reviewed. This requirement is mainly determined by the Public Interest Score (“PI Score”) of the company which is calculated by allocating points to certain key factors and figures of the company in order to …

Equal treatment for shareholders

Section 163 focuses specifically on the interest of minority shareholders. The protection of minority shareholders’ rights must be understood within the context of the provisions set forth by the Act, the common law, the Memorandum of Incorporation (MOI) of the Company and the Shareholders’ Agreement (if applicable). In terms of this section, an applicant may apply to the Court where …

Shareholders’ agreements in a nutshell

A shareholders’ agreement sets out how a private company should be operated and regulates the various shareholders’ rights and obligations. It is therefore important that a shareholders’ agreement be concluded at the beginning of the relationship to prevent disputes later on. The Companies Act No. 71 of 2008 (“the Act”) expressly recognises shareholders’ agreements. Section 15(7) of the Act states …

Have you hired the wrong person for the job?

When a company grows, the number of employees grows too and while this is an exciting venture, the pressure to fill new positions may lead recruiters to hire someone who does not fulfil the role at all. The decision to hire someone undesirable can be called a “bad hire”. The unfortunate part of this mistake is taking action, which could …

Don’t forget to file your company annual financials

In terms of Section 33 of the Companies Act 71 of 2008 (“the Act”), read with Regulations 28, 29, 30 and 33 of the Companies Regulations of 2011 (“Regulations”), companies and close corporations must submit Annual Financial Statements or a Financial Accountability Supplement (“FAS”) together with their Annual Return with the Companies and Intellectual Property Commission (“CIPC”) annually. All companies …

How to put together an exit strategy

Preparing yourself and your business for your inevitable exit from that business, whether by choice or fate, is one of the most neglected aspects we see in small and medium enterprises. That being said, we believe an exit strategy is critical not only in ensuring you achieve the best possible sale price on eventual exit, but also ensures that you …