Insight
We publish commentaries on current issues falling within the focus areas of our accounting practice. We often also touch on some of the more than 200 other Acts of Parliament or Provincial legislatures in South Africa that apply to our clients.
It will always be matters that we deem important to our clients.
We sometimes also Tweet when a particular matter caught our eye. The comments are grouped by Act, or category of an Act, where the volume of comments is high, or when searching for a specific comment would become difficult.
Do not construe our commentaries as legal advice on any of these aspects. Obtain professional advice on any matter before you act.
Enter the Category in the Search box to select all articles linked to such Category.
Date Published | Category | Sub-Category | Title | Brief Outline |
---|---|---|---|---|
2024-11-17 | Sustainability | Cashflows | Cashflow forecasting | Cash flow forecasting can be the difference between a business failing or succeeding. |
2024-02-12 | Legal compliance | CIPC | Cashflow forecastingCashflow forecasting | XBRL is used for businesses and accounting professionals. XBRL (eXtensible Business Reporting Language) is a freely available and global framework for exchanging business information. |
2024-02-01 | Internal audit, | Culture | A vigilant internal audit program | We all know colleagues who love to complain but do nothing about the problems they complain about. Eventually, a complainer loses value in a company and they end up having little influence. |
2022-12-12 | Contracts | Breach | Cancelling a contract | By not following the prescribed procedure in cancelling a contract can land you in trouble. |
2022-11-01 | Governance | Compliance | Compliance is expensive – try non-compliance | Most small businesses treat compliance as a secondary function with little consideration of the consequences. |
2022-10-29 | Personal finance | Death and taxes | Death and Taxes | What happens to your debt when you pass away - should I be scared about death and taxes? |
2022-09-12 | PoPI | Data breach guideline | PoPI data breach guidelines | In order for responsible parties to comply with their notification obligations under section 22 of the Protection of Personal Information Act (POPIA), the Information Regulator (IR) has published a set of guidelines along with a prescribed notification template which is to be used |
2022-09-03 | Prescription Act | Prescription – Fairness trumps legal certainty | Debt prescription – Fairness trumps legal certainty. Prescription of debts is generally absolute in its impact, and can be said to have a “guillotine effect” as a claim for a debt is unenforceable once it has prescribed. | |
2022-07-20 | A business perspective | 3 mistakes startups make | Building a company from an idea or concept is no easy feat. The failure rate of startups is high. On average around 50% of all startup businesses in South Africa failing within 24 months. | |
2022-07-11 | Economy | SMEs | Tough times ahead for SMEs | Small business development will be the key to SA overcoming its chronic unemployment problem. Sustained growth is a prerequisite. |
2022-07-01 | Economy | Load shedding | The cost of Eskom load shedding | The cost of Eskom load shedding is running into billions per day. This week saw South Africa’s worst week of load shedding at Stage 6 lasting for several days. |
2022-06-28 | Business perspective | Don't study your competition | Don’t study your competition | Don’t study your competition – rather study winners in other sectors. Entrepreneurs do not focus on the competition. |
2022-06-17 | Retirement | Cash out your benefits | Cash out your retirement benefits | The decision to cash out your retirement benefits when changing jobs is arguably the biggest contributor to many pensioners’ dire financial position. |
2022-05-30 | Strategies | Capital efficiency | Capital efficiency vs cash cushions | For decades, business schools did a brisk trade promoting courses on capital efficiency vs cash cushions. |
2022-05-24 | Funding | Start-up capital | Raising start-up capital | So you are ready and energized to go find investors for your startup, believing that nothing can stop you from raising start-up capital. |
2022-05-06 | A business perspective | Using an accounting service | Using Small Business Accounting Services | All small businesses must track their cash flows and develop financial systems. Luckily, using small business accounting services is an option available to you. |
2022-05-01 | A business perspective | Things you must do | Before You Start Your Small Business | These are the aspects you must do and prepare before you start your small business. |
2022-04-19 | Risks | Inflationary pressures | Is inflation bad for the economy | Do you believe the statement: Is Inflation bad for the economy? |
2022-04-03 | Personal finance | Household savings | SA’s household savings crisis | SA's household savings crisis is of grave concern. An analysis was done by savings fintech start-up MyTreasury.co.za, has distressing news |
2021-11-26 | Ethics | Professional integrity | Professional integrity failure | What is professional integrity failure? For instance, at which stage can the lead auditor of a global audit firm discuss his employment with the listed company being audited? To my mind, and that of the learned High Court judge in Botswana, most certainly not while the audit is in the process of being completed! |
2021-11-22 | ESG | PV solutions | Battery energy storage systems | Eskom’s ageing fleet of power stations has plagued the power utility and the country for years. Are battery energy storage systems the answer? |
2021-11-19 | Retirement funds | Stand-alone vs umbrella funds | Stand-alone retirement funds vs umbrella funds | Flexibility is, of course, linked to control, and employers sometimes fear losing control over the important aspects of the retirement fund |
2021-11-17 | PAIA | Public Interest | A triumph for SA’s access to information laws | It was as profound a victory for accountability as it was precedent-setting as a triumph for SA's access to information laws. |
2021-08-21 | Corporate Governance | Shareholders and directors | Six steps to resolving corporate governance principles at shareholder and director levels at SMEs – part 2 | This is the second of two articles dealing with the complexities often experienced at SMEs relating to shareholding, directorships and resolving corporate governance principles at this level |
2021-04-11 | ESG | Environment | Climate change is front and centre | When BlackRock chief executive Larry Fink says “climate change is front and centre”, the investment world listens. That’s because BlackRock, with almost $9 trillion (close to R138 trillion) entrusted to it, is the world’s largest asset manager. |
2021-03-31 | Companies | Shareholders, directors and governance | The issues impacting shareholders, directors and corporate governance at SMEs – part 1 | It is estimated that more than 750,000 SMEs registered as companies or CCs exist in South Africa, comprising a few persons, be it friends, associates or family, who came together to establish/operate a business. |
2021-03-30 | Companies Act | Oppresive or prejudicial behaviour by a company | Prejudicial conduct against minority shareholders | We regularly hear or read about oppressive or prejudicial conduct against minority shareholders. by a company. |
2020-10-27 | Companies Act | Key aspects of the Companies Amendment Bill 2018 | The Companies Amendment Bill 2018 | The Minister of Trade and Industry published the Companies Amendment Bill 2018 - a draft amendment Bill to the Companies Act, No 71 of 2008 (Companies Act) - for public comment on 21 September 2018. |
2020-10-17 | Companies | Front-line remuneration | Front-line remuneration – focusing on what is sold | Front-line remuneration – focusing on what is sold is not enough. How the employee does the job is at least as important as what the employee does. |
2020-10-14 | PAIA | The prescribed Manual | The PAIA Information Manual. Have you filed it yet? | As required by PAIA, I'm convinced that many private sector businesses have not yet published the PAIA Information Manual. Have you filed it yet? |
2020-10-10 | Companies | Executive remuneration | Executive Remuneration is lacking in symmetry. | Executives continue to get very well paid when companies do well, but also get very well paid when results are poor. Executive remuneration is lacking in symmetry with the performance of the enterprise. |
2020-10-05 | Companies | Corporate Governance | “Corporate Governance”. Where does it come from? | The term "corporate governance". Where does it come from? |
2020-10-04 | Companies | Executive remuneration | Blame the incentives for the evils of capitalism | Are stock options the root cause of all the major shortcomings of capitalism? |
2020-09-13 | Companies | Seven pitfalls awaiting non-executive directors | Seven pitfalls awaiting non-executive directors | Corporate governance in South Africa differentiates between non-executive directors (“NED”) and independent directors (“ID”) of companies. |
2020-09-09 | Internal audit | Internal pressures | Internal pressure – a threat to internal audit’s objectivity. | Internal pressure is a pervasive threat to the internal audit's objectivity. Nothwithstanding this, the internal audit function of larger enterprises is critical for assessing the maintenance of good governance. |
2020-09-07 | B-BBEE Act | Fronting practices | Guidelines defining B-BBEE fronting practices | No clear guidelines defining B-BBEE fronting practices have been available since the Broad-Based Black Economic Empowerment Act 53 of 2003 as amended ("B-BBEE Act") became law. |
2020-09-06 | Companies Act | Shareholder resolutions | Shareholders’ resolutions at AGMs | Considering shareholders’ resolutions at AGMs is allowed in terms of the Companies Act (“Act”). The Act grants shareholders wide powers to propose such resolutions. |
2020-09-06 | Companies Act | MoI vs Companies Act | Unalterable provisions – MoI vs the Companies Act. | It is important to note that unalterable provisions pitch the MoI vs the Companies Act. The latter will always prevail over provisions of the company’s MOI. |
2020-08-30 | Companies Act | CIPC Compliance Checklist | CIPC Compliance Checklist | South Africa’s Companies and Intellectual Property Commission (“CIPC”) introduced a new requirement with effect 1 January 2020. This must be done at the same time when lodging annual returns. It is a Compliance Checklist and it’s a mandatory submission to be made. |
2020-08-22 | PoPI Act | How have businesses structured their compliance? | How have businesses structured their compliance with PoPI? | How have businesses structured their compliance with PoPI? Everywhere you turn you find companies offering you a download of something in exchange for your contact details. |
2020-08-20 | Soft Skills | The art of brevity | Brevity – saying more with fewer words | Saying more with fewer words. Brevity is a lost art in this age of data overload. |
2020-08-18 | PoPI Act | Processing of personal information | Processing of personal information – what you need to know | The processing of personal information is an important compliance matter for all businesses these days. By now most people know that the Protection of Personal Information Act 4 of 2013 (the “PoPI Act”) is the law with effect 1 July 2020. |
2020-08-16 | Companies | Conflicts of Interest | Conflicts of Interest at the workplace. | Managing personal conflicts of interest in the workplace is not receiving enough attention. Do you have a program to manage potential areas of conflict of interest? |
2020-08-15 | PAIA | The prescribed Manual | The prescribed manual from PAIA/a> | I fear that many private sector businesses have not yet published the prescribed Manual as required by PAIA. Are you compliant? |
2020-08-04 | The PoPI Act | 10 Things to do now | The PoPI Act – ten things you must do now | To become compliant with the PoPI Act does not happen overnight. Here are the ten things you must do now (in no specific order). You have to work at it. You also do not have much time left before the full force of the Act kicks in. |
2020-08-02 | Risk Management | Three Lines model of risk management | Three Lines Model for risk management | A new model for governance and risk management issued Monday 20 July 2020 by the Institute of Internal Auditors (IIA) makes major updates to the Three Lines of Defense model that has been popular for years. |
2020-08-02 | Companies | Business rescue processes | Business rescue process – a very low success rate | “The business rescue process of South African Airways, which, after almost eight months and billions of rand, is still not complete, has put the spotlight on whether business rescue is indeed a viable option provided by the Companies Act.” |
2020-08-01 | Companies Act | Alterable provisions | Companies Act – what are the alterable provisions? | The most important document governing a company is the Memorandum of Incorporation (MOI). The MOI sets out the rules governing the conduct of the company, as specified by its shareholders. |
2020-07-30 | PoPI Act | Right to privacy vs right to assess information | Balancing right to privacy with the right to access personal information | We believe that the aim of the PoPI Act is to balance the right to privacy with the right to access the personal information of individuals and businesses. A difficult balancing act at the best of times. |
2020-07-27 | PoPI Act | Data breaches | Data breach – how valuable is a memory stick? | By now most individuals know that the Protection of Personal Information Act 4 of 2013 (the “PoPI Act”) is with effect 1 July 2020, law. Every public and private enterprise has to comply, and a grace period of 1 year applies. |
2020-07-26 | Companies | CIPC Compliance Checklist | The CIPC Compliance Checklist | The CIPC Compliance Checklist- This is an online form to be completed to enable CIPC to track compliance with the Companies Act and Regulations |
2020-07-26 | Companies | Share buy-back | Why does a board opt for a share buy-back of the company’s shares? | Ever wondered why a board opts to buy back the company’s shares? This is almost always the subject of a shareholders’ resolution at each AGM of an issuer. |
2020-07-25 | Companies Act | Exemptions From The Unalterable MOI Provisions | Exemptions From The Unalterable MOI Provisions | Section 6(2) of the Act creates a process for a person to apply to the Companies Tribunal (Tribunal) for an administrative order exempting "an agreement, transaction, arrangement, resolution or provision of a company's MOI or rules from any prohibition or requirement established by or in terms of an unalterable provision of this Act" |
2020-07-25 | Companies Act | Alterable and unalterable provisions | Alterable and unalterable provisions of the Companies Act | There is no doubt that the Companies Act (71 of 2008) (“Act”) has modernised corporate law in South Africa, by amongst other things, creating flexibility and simplicity in the formation and maintenance of companies whilst promoting a balance between the rights and obligations of shareholders and directors. |
2020-07-25 | Corporate Culture | Culture & ethics | As your corporate culture goes, so does your company | Every great company requires a foundation, and the foundation of a company is its culture. Every employee should say “It’s my company, so I want to drive the culture”. If you fail to shape the culture in your business, then society will do it for you. |
2020-07-25 | Companies Act | Sales of shares in a private company | Sale of shares in a private company | This article deals with the sale of shares in private companies and the possible involvement of the Takeover Regulation Panel (the “TRP”). |
2020-07-25 | Companies Act | The Public Interest (PI) Score | The “public interest” score: important factor for many companies | This article only deals with companies which have to use the public interest score (“PI Score”) per Regulation 28 to determine if an audit needs to be performed in respect of a financial year. |
2020-07-25 | Companies Act | Access to company records | Company records – who has right of access | The Companies Act 2008 provides for individuals’ right of access to the records of a company, within limits: |
2020-07-22 | Companies | Virtual shareholder meetings | Virtual AGMs. How not to do it. | Everything about the #JSEZED AGM held on 17 July is what gives #virtualagm shareholder meetings a bad name |
2020-07-19 | Companies Act | Directors Shareholders | Virtual shareholder meetings – six issues to consider | Corporate South Africa has been in national lockdown since late March. However, business life must go on. This includes the fact that boards of all companies have struggled to call shareholders' meetings. The only option is to opt for virtual shareholder meetings. |
2020-07-06 | PoPI Act | The PoPI RAM toolkit | The PoPI-RAM Toolkit will help you to comply with the Act | All businesses need to assess the relative level of compliance readiness of all their respective departments responsible for the personal information of clients, suppliers, service providers, HR and other operations such as security access, reception and security gate records. |
2020-06-09 | Companies Act | Directors | Reckless trading: a director’s liability | The well-known “CNA” case brought by the CNA liquidators against John Newton, the financial director of CNA on the basis of alleged reckless trading, is still very relevant today, even though the case was decided under the 1973 Companies Act. |
2020-04-12 | Companies Act | Directors and "deemed directors" | Directors and “deemed directors” | Much has been written about the many, often onerous requirements of directors and people deemed to be directors of a company. |
2020-04-12 | Companies Act | The Prescribed Officer | The “prescribed” officer | Regulation 38(1) of the Companies Act 2008 as amended states: Despite not being a director of a particular company, a person is a prescribed officer of the company for all purposes of the Act if that person.... |
2020-04-12 | Companies Act | Company Names | Company names | Section 11(3)(c) of the Companies Act 2008 provides that: "a company name, irrespective of its form or language, must end with ...... |
2020-04-12 | Companies Act | Social & Ethics committee | 15 Steps to compiling a great management report to the Social and Ethics Committee (“SEC”) | The development of a corporate social and ethical behaviour is a journey and not a destination for every company and even starting from a low base is still worth reporting. |
2020-04-12 | Companies Act | Registered office; Company records | Registered office and company records: what you need to know | What is the registered office of a company? What company records must be kept at this office? Why is the registered office and company records so important? |
2020-04-12 | Companies Act | Financial reporting | Financial reporting – the responsibility of directors | Subject to Section 214(2) of the Companies Act 2008, it is an offence under Section 29(6) for the board of a company to approve its AFS.... |
2020-04-12 | Protection of Personal Information Act | PoPIA | Protection of Personal Information Act – are you on top of your game? | The PoPI Act was signed into law in November 2013. However, PoPI isn't effective yet. The president still has to decide on the commencement date. Not only do we need to wait for a commencement date, but PoPI also allows an additional year from the commencement date for you to comply with its requirements. |
2020-04-12 | Companies Act | The independent director | The Independent non-executive director | An independent non-executive director. Who is it? When are you truly independent for the company and/or other members of the board? |
2020-04-11 | Companies Act | Inter-company Loans | Inter-company loans – not a good idea anymore | Does your group still process inter company loans by: consolidating the daily bank balances of group companies into a single bank account on an overnight basis, or operating a structured inter company deposit & loan business via a finance subsidiary, where group companies are obliged to deposit or borrow funds instead of using their bankers? |
2020-04-11 | Companies Act | Solvency & Liquidity | Solvency and liquidity: the test for companies | The Companies Act 2008 reflects a shift away from the principle of maintaining the capital structure, to maintaining the solvency and liquidity of the enterprise, when compared to the previous 1973 Act. |
2020-04-11 | VAT Act | Failure to pay over VAT | Failure to pay over VAT is not theft | Failure to pay over VAT is not theft. A Supreme Court of Appeal decision handed down in December 2014 (Director of Public Procecutions, Western Cape v Parker [2014] ZASCA 223) has dismissed the contention of SARS that the failure to collect and pay over VAT to SARS constitutes common law theft. |
2020-04-11 | VAT Act | Claiming input VAT without invoices | Claiming input VAT without tax invoices is allowable | An interesting case relating to claiming input VAT was recently adjudicated on by the Western Cape High Court (ABC (Pty) Ltd vs Commissioner for SARS [2015] ZAWCHC 8) relating to the use of sponsorship agreements as a basis for claiming input VAT without tax invoices from the sponsor (despite having asked for it), when the same sponsorship agreement is used to determine the value of output VAT payable by the vendor. |
2020-04-11 | Companies Act | Directors' remuneration | Directors’ remuneration | Section 30(4) of the Companies Act 2008 requires the annual financial statements of every company which is required to have its annual financial statements audited in terms of the Act, to disclose remuneration received by each director..... |
2020-04-11 | Companies Act | Corporate Boards | Corporate boards: its role and function | I find it interesting and informative to work through the opinions expressed by others in recent times. Much has been written about corporate boards and their role and function. |
2020-04-11 | Companies Act | Board committees | Appointing Committees of the Board | Appointing board committees The board of directors of a company may appoint any number of committees, and may delegate to any committee any of the authorities of the board in terms of Section 72 of the Companies Act This is subject to the provisions of the Memorandum of Incorporation. |
2020-04-03 | Companies | Boards of directors | Holding corporate boards to account | Serving as a director of a company, be it a JSE-listed group or a small family-owned business, brings with it several onerous responsibilities. |
2019-12-31 | Labour Law | Employment in SA | Ten things you should know when employing in South Africa | The Employment Equity Act (EEA) was established to achieve equity in the workplace through the elimination of unfair discrimination and the implementation of affirmative action measures. |
2019-12-31 | Labour Law | Employment Equity | Employment Equity – new requirements | Department of Employment and Labour recently amended the Employment Equity regulations to include an updated EEA4 form applicable to ‘designated employers’. |
2019-10-19 | Companies Act | CIPC; iXBRL | Companies that must utilise iXBRL | Depending on the regulatory requirements of the Companies Act (the “Act”) applicable to a specific enterprice, all entities MUST submit their annual financial statements (“AFS”) together with their Annual Returns. |
2019-10-19 | CIPC | CIPC; iXBRL | iXBRL – the digital financial reporting solution | With effect 1 July 2018 the CIPC’s Digital Financial Reporting Programme using iXBRL came into operation. |
2019-10-19 | Companies Act | PI Score | Calculating the Public Interest (“PI”) Score | The Companies Act No. 71 of 2008 (the “Act”) came into effect on 1 May 2011, and amongst other important provisions, introduced the concept of the public interest (“PI”) score of a company. |
2019-10-19 | Companies Act | CIPC | CIPC – failure to submit AFS with Annual Returns | Three companies slapped with 10% of turnover fines as they did not file annual financial statements and another 20 companies are being investigated. |
2019-10-19 | PoPI Act | Data breach | PoPI Act – cost of a data breach | A new IBM Security study finds that hidden costs in data breaches – such as lost business, negative impact on reputation and employee time spent on recovery – are difficult and expensive to manage. |
2019-10-19 | Companies Act | Audits | Types of companies subject to audit in SA | Regulation 28 of the SA Companies Act 2008 provides that the following types of companies are subject to audit (unless they are exempted in terms of Section 30(2A) of the Act): |
2019-10-19 | Companies Act | Independent Review of AFS in SA | Independent Review of AFS in SA | Regulation 29 of the SA Companies Act 2008 provides that every company is subject to an independent review unless: 1 – it is exempted in terms of Section 30(2A) of the Act, or 2 – it is required in terms of its MoI to have its AFS audited, or 3 – it has voluntarily subject its AFS for that year to audit. An independent review must be carried out in the case of: 1 – a company which a public interest score of at least 100 for a particular year, by an auditor or a member of an accredited professional body, or 2 – a company which has a public interest score of less than 100 for that particular year, by an auditor or a member of an accredited professional body, or a person qualified to be appointed as the accounting officer of a close corporation. An independent review may not be carried out by the person involved in the preparation of the AFS. |
2019-10-19 | Companies Act | CIPC | Company Annual Returns | Regulation 30 of the SA Companies Act 2008 provides that a company must, unless its exempted by CIPC from doing so, file its annual return with CIPC |
2018-06/06 | Companies Act | Duties of directors | Duties of directors | The duties and liabilities of directors are dealt with in sections 75 to 77 of the Companies Act, 2008. The definition of “director” now includes: |
2017-08-16 | Accounting | IFRS | International Financial Reporting Standards | www.ifrs.org: “Our mission is to develop IFRS Standards that bring transparency, accountability and efficiency to financial markets around the world. Our work serves the public interest by fostering trust, growth and long-term financial stability in the global economy.” |
2017-08-16 | Tax Administration Act | Banks' power to freeze funds | Tax Administration Act | Section 190(5A) of the Tax Administration Act, 2011 requires a bank to immediately report to SARS if it has a reasonable suspicion that the payment of an amount is related to a tax offence. |
2017-08-15 | Companies Act | Document retention | Document retention | Company Records required to be maintained In terms of Section 24 of the Act, each company registered in South Africa must keep the following: |
2017-08-15 | Protection of Personol Information Act | Obtaining your details | This is how they got your number…. | The next time a call centre agent tells you they got your number from the “national consumer database”, ask to speak to their manager. |
2016-02-16 | Protection of Personal Information Act | Signed into Law | Protection of Personal Information Act | The Protection of Personal Information Act was signed into law in November 2013, and certain sections of the Act became effective during April 2014. |
2015-09-23 | Companies Act | Board diversity | King III: Is there really a flaw in King’s board formula? | I recently came across an article by Lesley Stones dated 15 December 2014 titled “The flaw in King’s board formula”. It covered the opinion of public relations practitioner Shonisani Makhari expressed in his MBA dissertation against the background of King III. |
2015-05-10 | Companies Act | Social & Ethics Committee | Social and Ethics Committee of the board | The intention of the Act in prescribing the establishment of a social and ethics committee of the board for defined enterprises, is to bring about a more structured and focused approach to social and ethical issues encountered in the workplace |
2015-05-09 | Companies Act | Companies Act | Companies Act, 2008 | The South African Companies Act 71 of 2008 has replaced the Companies Act 1973 with effect 1 May 2011, except for the sections dealing with the winding-up and liquidation of insolvent companies. These sections remain in force. The new Act introduces many new principles, rights, obligations, procedures, remedies and sanctions |