FANews
FANews
RELATED CATEGORIES

Black Economic Empowerment – Amended Company Laws will stimulate Deal Activity

20 May 2008Deneys Reitz

Historically, our company laws prohibited a company from providing financial assistance for the purchase of its own shares. This restriction was aimed at preserving the company’s capital and protecting the minority shareholders and creditors of the company. However, in recent years, it also had the effect of hampering the implementation of black economic empowerment in South Africa in that empowerment partners could not look to the company for financial assistance to take up shares in the company.

Click here to read more (PDF file 147kb)

 

Quick Polls

QUESTION

Do you feel that Nova acted in the best interest of the Sharemax shareholders that they were trying to assist?

ANSWER

Yes
No
AE fanews magazine
FAnews November 2016 EditionGet the latest issue of FAnews

This month's headlines

Is the insurance industry really listening?
When politics trumps economics
The Economic considerations of Twin Peaks
A broker is not a policeman
Are medical scheme brokers the scapegoat?
Subscribe now