Securing Shareholder Information in the Digital Age – An Analysis of the Proposed Amendments to Section 26 of the Companies Act

by | May 18, 2021 | SAMLJ, SAMLJ V32 I3

Securing Shareholder Information in the Digital Age – An Analysis of the Proposed Amendments to Section 26 of the Companies Act

Author: Mzukisi Njotini

ISSN: 1996-2185
Affiliations:Vice Dean (Teaching and Learning), Faculty of Law, University of Johannesburg
Source: South African Mercantile Law Journal, Volume 32 Issue 3, 2020, p. 334 – 359
https://doi.org/10.47348/SAMLJ/v32/i3a2

Abstract

Amending company legislation has become a common occurrence in South Africa. The legislature has passed a number of statutes to alter the principles regulating corporate entities. It is noteworthy that the Companies Act 71 of 2008 is the most substantial of these amending statutes. This Act harmonised the legal principles governing the operation of companies, and brought companies closer to the developmental needs of society. It sought to promote economic grown, investor confidence and foreign investment, and accelerate the transportation of goods and services globally. Because of the need for companies to continue to promote innovation, the legislature proposed measures to repeal certain provisions of the Companies Act. Clause 4 of the Companies Amendment Bill of 2018 contains the proposed changes. The provision supports one of the cardinal ideals of an information society — to improve the free flow of information. However, the challenge with the section 4 provisions is that they are likely to endanger the sanctity of personal information stored online. Specifically, it is not completely clear to what extent the proposed amendments will enhance the integrity of online information, as opposed to weakening it.

Residual Goodwill – A Case of Discontinued Marks: Beiersdorf AG v Koni Multinational Brands (Pty) Ltd

by | May 18, 2021 | SAMLJ, SAMLJ V32 I3

Residual Goodwill – A Case of Discontinued Marks: Beiersdorf AG v Koni Multinational Brands (Pty) Ltd

Author: Nomthandazo Mahlangu

ISSN: 1996-2185
Affiliations: Postgraduate assistant, Department of Mercantile Law,
University of South Africa
Source: South African Mercantile Law Journal, Volume 32 Issue 3, 2020, p. 360 – 388
https://doi.org/10.47348/SAMLJ/v32/i3a3

Abstract

The remedy in passing-off is directed against a representation made by the respondent that amounts to a misrepresentation that damages the goodwill of a business. The applicant in a passing-off claim must successfully establish its existing goodwill. In circumstances where the applicant’s business is abandoned, the accumulated goodwill may continue to subsist in the form of residual goodwill that is retained in the distinctive mark long after the business has ceased to exist. This article aims to explore whether the discontinued use of the get-up amounts to the abandonment of goodwill where the business continues, and whether residual goodwill subsists in the abandoned get-up, in the light of Beiersdorf AG v Koni Multinational Brands (Pty) Ltd 2019 BIP 23 (GJ). The article further examines the underlying challenges surrounding the application of the concept of residual goodwill, in particular where the applicant has abandoned the use of the mark or get-up, and the consequences that arise.

A Reflective Assessment of Selected Problematic Aspects of South Africa’s Appraisal Remedy Regime Against the Backdrop of Cilliers v La Concorde Holdings Ltd

by | May 18, 2021 | SAMLJ, SAMLJ V32 I3

A Reflective Assessment of Selected Problematic Aspects of South Africa’s Appraisal Remedy Regime Against the Backdrop of Cilliers v La Concorde Holdings Ltd

Authors: J Mudzamiri & PC Osode

ISSN: 1996-2185
Affiliations: LLD candidate, Nelson R Mandela School of Law, University of Fort Hare; Professor of Commercial Law and Regulation, Nelson R Mandela School of Law, University of Fort Hare
Source: South African Mercantile Law Journal, Volume 32 Issue 3, 2020, p. 389 – 406
https://doi.org/10.47348/SAMLJ/v32/i3a4

Abstract

Several policy rationales have been offered as justifications for the new appraisal remedy, including its functioning as a credible exit vehicle for disgruntled shareholders upon receipt of payment of a ‘fair value’ for their shares. However, against the backdrop of the High Court decision in Cilliers v LA Concorde Holdings Ltd, this article explores two problematic issues regarding the practical application of the appraisal remedy. The first issue relates to who may access the remedy, while the second relates to the complexity, costs, and rigidity of the procedure that must be followed to access successfully the inherent benefits of the appraisal remedy. The paper argues, in the first instance, that the court’s decision in Cilliers to allow disgruntled shareholders in a holding company to access appraisal rights in relation to a subsidiary is salutary; and, secondly, that the complexity, costs, and rigidity of the appraisal procedure can be alleviated through the revision of some of the underlying statutory provisions.

The Impact of Deepfakes on the Right to Identity: A South African Perspective

by | May 18, 2021 | SAMLJ, SAMLJ V32 I3

The Impact of Deepfakes on the Right to Identity: A South African Perspective

Author: Nomalanga Mashinini

ISSN: 1996-2185
Affiliations: Lecturer in Law, Rhodes University
Source: South African Mercantile Law Journal, Volume 32 Issue 3, 2020, p. 407 – 436
https://doi.org/10.47348/SAMLJ/v32/i3a5

Abstract

The right to identity aims to protect the subjective interests of individuals in their likeness, image, voice, and other distinctive personality attributes. The right to identity is legally recognised in South Africa, but deepfakes have a tendency to devalue this right. Deepfakes are created with deep learning software that enables users to create deceptive videos, sound recordings, and photographs of events and people that are indistinct from reality. This goes against a person’s right to control the use of their likeness. South African law does not directly regulate the creation and publication of deepfakes. Liability for the publication of deepfakes may be established using principles in different fields of law, such as the law of delict and criminal law. However, the dissemination of deepfakes on the internet continues to evolve, as they become more difficult to detect, and this necessitates a new perspective on how to provide sufficient remedies for victims whose right to identity is violated through deepfakes. It also calls for the refinement of establishing the liability of people who are tagged to deepfakes posted on social media. This article aims to highlight the challenges in protecting the right to identity and establishing liability under South African law in the context of deepfakes.

The taxation of dividend stripping transactions: a comparison between South Africa, Australia and Canada

by | May 13, 2021 | TSAR, TSAR 2021 I1

The taxation of dividend stripping transactions: a comparison between South Africa, Australia and Canada

Authors: L Tredoux & K Van der Linde

ISSN: 1996-2207
Affiliations: Senior Lecturer, University of South Africa; Professor, Department of Mercantile Law, University of Johannesburg
Source: Tydskrif vir die Suid-Afrikaanse Reg, Issue 1, 2021, p. 1 – 28
https://doi.org/10.47348/TSAR/2021/i1a1

Abstract

Dividend- of surplusstropery is een van die vele maniere waarop belastingbetalers hul belastingaanspreeklikheid kan uitskakel of aansienlik kan verlaag vergeleke met wat normaalweg verwag sou wees. ’n Belastingstelsel onderskei gewoonlik tussen die belasting op dividende en die op ander betalings wat verband hou met aandele. Alhoewel hierdie onderskeiding daarop gemik is om die negatiewe effek van ekonomiese dubbelbelasting te oorkom of te verminder, bied dit ook moontlikhede vir belasting-arbitrage, waar belastingbelastingbetalers en hul adviseurs uitkerings ten opsigte van aandele struktureer ten einde voordeel uit belastingkoersverskille te trek. Dividendstromingstrukture (dividend streaming) “stroop” ʼn maatskappy spreekwoordelik van sy wins deur middel van dividende op ʼn manier wat geen of baie min belastingaanspreeklikheid meebring. Daarteenoor onttrek kapitaalvoordeelstroming (capital benefit streaming) winste op ʼn belastingvriendelike manier uit wat onder normale omstandighede as dividende uitbetaal sou word. Die verlies aan belastinginkomste wat deur sulke skemas meegebring word is vanuit ʼn fiskale perspektief ongewens, en spesiale teenvermydingsmaatreëls word dikwels ingestel om die belastingbasis te herstel. Alhoewel vermydingskemas sekere kenmerke mag deel, hang die transaksies of reëlings wat gebruik word vir die onttrekking van dividende af van die tegniese kenmerke van elke belastingstelsel. Ons vergelyk die Suid-Afrikaanse, Australiese en Kanadese spesiale teenvermydingsreëls wat teen dividendstropery gemik is. Die oorkoepelende korporatiewe belastingstrukture in hierdie jurisdiksies verskil, maar tog is daar aansienlike ooreenstemming ten opsigte van die soorte skemas wat deur die reëls teen dividendstropery geteiken word, sowel as die regstellende belastingeffek sodra die reëls toegepas word. Die transaksie-eienskappe wat gebruik word om dividendstropingskemas te identifiseer waarop die spesiale teenvermydingsmaatreëls dan toegepas kan word, verskil egter in belangrike opsigte. Australië maak gebruik van die algemene teenvermydingsreël as ʼn primêre oplossing deur te bepaal dat sekere spesifieke dividendstropingskemas kwalifiseer as skemas vir die toepassing van die algemene reël. Daar moet steeds aan die oorblywende vereistes van die algemene teenvermydingsreël voldoen word, insluitend die vermydingsbedoeling. In Kanada is die spesifieke teenvermydingsbepalings dikwels gerig op transaksies met verwante partye, terwyl die algemene teenvermydingsreël as laaste uitweg gebruik word om transaksies aan te val wat nie aan die vereistes van spesifieke bepalings voldoen nie. Daarteenoor is die Suid- Afrikaanse spesifieke teenvermydingsbepalings geneig om op objektiewe, ietwat arbitrêre faktore staat te maak, in die meeste gevalle sonder om op die belastingpligtige se bedoeling ag te slaan. Soos die Kanadese benadering, kan die algemene teenvermydingsreël in Suid-Afrika ook toegepas word om belastingvermydingskemas te tref waar die spesifieke bepalings nie toegepas kan word nie. Ons stel verskeie verbeterings aan die Suid-Afrikaanse bepalings voor om die reikwydte van die dividendstropingsreëls uit te brei en hopelik ʼn einde te bring aan die kringloop van reaktiewe wetswysigings gevolg deur nog ʼn nuwe sarsie skemas.