Winding up under the old and new Companies Acts
South Africa - Garlicke & Bousfield Inc
The recent Supreme Court case of Murray NO and others v African Global Holdings (Pty) Ltd concerned the group of companies known as the Bosasa Group, which has received much scrutiny under the Zondo Commission into State Capture. From evidence led on the relationships between certain senior politicians and the Group, two banks withdrew all facilities servicing Group companies. The Group was not able to find replacement facilities and business operations were negatively affected, to the extent that the Group took the decision to wind up African Global Operations (Pty) Ltd and its subsidiaries (“Operations”). Operations performed the treasury functions for the Group.
The resolutions to wind up Operations under a creditor’s voluntary winding up were taken in terms of section 351 of the Companies Act 1973. This section of the 1973 Act continues to operate despite the repeal of this Act. In terms of section 343, a company may be wound up voluntarily or by court order.
Garlicke & Bousfield Inc
Buy-to-let investors: brace for a potential spike in arrears
South Africa - BusinessLive
With residential rental defaults set to escalate as a result of the government’s anti-coronavirus measures, tenants and landlords alike need to understand their legal options
Buy-to-let investors should brace themselves for a potential spike in arrears, as the government’s coronavirus-induced national lockdown could affect residential tenants’ ability to pay rent.
That’s bad news for the rental housing market as a whole. It will place further pressure on buy-to-let returns, which have already been eroded by softer rental growth on the back of an oversupply of flats and townhouses in suburbs across SA.
Depending on which source you use, SA’s residential tenant delinquency rate — or rate of high-risk tenants, as they are also called — already stood at 18%-26% in the fourth quarter of 2019. In other words, one in every four to five families renting a flat or townhouse is not paying rent, or is making only partial payment.
Can the property development industry ever go back to normal?
South Africa - Property360
Some are optimistic. They feel the weakening of the rand may encourage foreign interest in South African properties which will in turn assist the recovery of the property development industry.
Added to that, once the lockdown has achieved its desired effect, Dave Williams-Jones, chief executive of FWJK believes the South African economy and the construction industry specifically – which is one of the large drivers of the economy – will return to normal in the short-term.
“Work will commence on construction projects around the country and we will quickly return to life as it used to be, albeit in a tougher economy. “I do expect greater foreign interest in buying South African properties due to the weakening of the rand which is a trend that we have observed in previous economic cycles and this, in itself, will help fuel the recovery in the property development industry.”