Business Rescue – Is it too late after liquidation?  The Supreme Court of Appeal speaks

Business Rescue – Is it too late after liquidation? The Supreme Court of Appeal speaks

Legal
An important new SCA (Supreme Court of Appeal) decision recently addressed the following scenario - A close corporation runs a business renting out its commercial properties. The properties are bonded to a bank. The close corporation was placed into final liquidation by the High Court despite contending that it should rather be placed under business rescue. 5 months later it applied again for business rescue, but the High Court concluded that once a final liquidation is granted against a company (the same business rescue provisions apply to close corporations as to companies), it is too late to apply for business rescue. On appeal however, the SCA held the opposite, in other words that you can apply for the business rescue of a company even after a final liquidation order is…
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Family Responsibility Leave – Your FAQs

Family Responsibility Leave – Your FAQs

Legal
When can an employee take fully-paid leave to deal with family matters and not have it deducted from his/her annual leave entitlement?  This is often a source of confusion for both employers and employees, but it needn’t be.  The BCEA (Basic Conditions of Employment Act) sets everything out clearly, although note that some employers grant more favourable terms than the statutory minimums, either in their discretion or in terms of a “collective agreement” with a trade union. (more…)
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Renting in a complex?  Read the rules!

Renting in a complex? Read the rules!

Legal
“….. parties are free to contract as they please. The law permits perfect freedom of contract. Parties are left to make their own agreements, and whatever the agreements are, the law will enforce them provided they contain nothing illegal or immoral or against public policy” (extract from judgment below)   Be warned – whether you buy into a residential complex or rent a house in one – the High Court (in the case of Van Rooyen v Hillandale Homeowners Association) has again upheld the right of Home Owners Associations (HOAs) to enforce their rules and regulations. (more…)
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Selling a business with Goodwill: Beware this Implied Prohibition

Selling a business with Goodwill: Beware this Implied Prohibition

Legal
When you sell a business including its “goodwill”, you will likely be prevented from opening up in competition with your old business by a “restraint of trade clause” in the sale agreement. Your 5 year restraint period lapses – what next? Restraint clauses have to be reasonable in duration, so somewhere along the line your restraint period will lapse.  And when that happens, you may think that you are now completely free to set up shop again. (more…)
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Landlords: can you switch off your defaulting tenant’s lights?

Landlords: can you switch off your defaulting tenant’s lights?

Legal
Your tenant isn’t paying rent and refuses to move out – can you turn the electricity off? First - commercial or residential? The judgment discussed in this article relates to a commercial occupier and as is noted below, residential occupiers enjoy additional protections to commercial occupants. There will no doubt be much debate in legal circles as to what extent this new decision might or might not assist landlords of residential premises. As always, take advice upfront! (more…)
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