What is it, why does it exist and why is it important? The draft Conduct of Financial Institutions Bill (COFI) was released for public comment in 2018. COFI was drafted in conjunction with the Financial Sector Regulators Act of 2017 (FSR Act) as part of an extensive reform of the South African financial services legal …
Everything you need to know about COFI: The Conduct of Financial Institutions Bill Read More »
When a business decides to raise funds, it has a number of options available. The most common options would be in the form of a loan from a licensed institution (whether in the form of overdrafts, revolving credit facilities, syndicated loans or other forms) or to approach the capital markets. These loans would c be …
Loan Agreements: The Dark Side (Part III of III) In Part I of this series we took a look at the contracting parties to a loan agreement as well as the commercial details of a loan. In Part 2, we looked at important loan terms like representations, warranties, undertakings, qualifications and exceptions. Now, we look …
Loan Agreements: The Dark Side (Part III of III) Read More »
Introduction In Part I of this series we took a look at the contracting parties to a loan agreement and the commercial details of a loan. Once the parties have agreed on the commercials of the loan, the lender generally prepares the relevant loan documents detailing the standard commercial terms and conditions on which the …
Loan Agreements: The Nitty-Gritty (Part II of III) Read More »
The National Credit Act 34 of 2005 (“NCA”) requires that, if you are selling your shares or assets in a company to a purchaser, and you have structured the sale such that: The full purchase price, or a portion thereof, will be paid at a later stage either in installments or one bullet payment; and …
Selling Shareholders Beware: How the NCA affects Vendor Financed Transactions Read More »
A sale of business or shares usually follows a predictable pattern. In many cases, the seller agrees to transfer business assets or shares before receiving final payment, which is referred to as a ‘deferred payment’ or ‘deferred loan’. A seller may agree to transfer ownership on a deferred payment basis for various reasons, including a …
Deferred Payment Sales: Risks and Mitigation Tips for Sellers Read More »
As the business world feels the effects of the coronavirus (Covid-19) pandemic and takes steps to adapt, travel companies are notifying partners that their force majeure policies have been extended to all travellers from Mainland China and all properties within Mainland China. The result is that deposits received by hotels and guesthouses will be repaid …
Lending in general South African businesses, whether state-owned, listed or just starting up, are struggling. Retrenchments are the order of the day and a poor credit rating continues to mar funding and investor prospects. However bleak it may seem, the small and medium-sized enterprise (SME) sector in South Africa is growing by the day. Several …
Loans in terms of which the obligation for repayment of the outstanding amount only arises on receipt of a demand for repayment from the lender (“Demand Loans”) are frequently being used in South Africa as part of trust/company structures or business operations in general. A word of warning – Demand Loans may have become ticking timebombs for …
Last year, Bitcoin and other cryptocurrencies sparked a modern gold rush spurred on by stories of individual investors making millions in a short period from their investment in Bitcoin. The desire to get rich quickly encouraged every man on the street to own a virtual wallet to buy cryptocurrencies and saw the advent of many …
Cryptocurrency as an Investment: Classification Hurdles Read More »
