|
6 JUNE 2011
ECONOMY
Schussler says that the spurt in our economic growth in Q1 '11 was largely driven by the State spending. Such growth is not sustainable and, he says that our economic growth is slowing.
Investec says that, for now, the exuberant price growth of resources is over. S & P says that, if the growth spurt in China were to slow down, resources' prices could drop by 75%.
PROPERTY
The demand for bond finance, across all sectors of South Africa, is at its lowest in 45 years.
Sapoa has met with the DTI and the National Consumer Council on the effect of the Consumer's Protection Act on long-term leases. The current arrangement, which allows a tenant who is an individual consumer, to cancel a lease with a supplier of accomodation, to cancel on four weeks notice after 24 months, is the prime issue at hand. Perhaps an arrangement to exempt long leases from the CPA can be made?
BUSINESS
The Apple iMac achieved a 10/10 rating in its road test by FinWeek. A snip at R12.5g.
The controversial traffic points demerit system known as Aarto is ready to be deployed. Part thereof will be a touch-screen based license system that, it is deemed, will help stamp out bribery and cheating.
The Treasury has issued a new "instruction note" to officials dealing with government tenders. This is directed at controlling fraud and improving accountability.
To check whether your computer can show 3D videos check www.3dvisionlive.com/3dvhtml5-detection. To download the necessary drivers try www.nvidia.com/download/find.aspx?lang=en=us.
Only 37% of new small businesses make it beyond the first two years: Largely owing to a lack of financial, business sales and management skills (Standard Bank).
MINORITY SHAREHOLDERS AND DISPOSAL OF ASSETS
It often happens that a profit company sells its major asset or even its entire business. Are minority shareholders protected? Yes, in three respects:
Firstly, the company must, before the sale, obtain a special resolution from its shareholders authorising the transaction. To arrange this, a meeting must be called and the precise terms of the intended resolution must be included in the notice of the meeting. This notice must be given ten business days before the meeting and the meeting must be attended by persons entitled to exercise at least 25% of the voting rights. At the meeting, the resolution must be supported by at least 75% of the voting rights present. The new Companies Act also provides for such a resolution to be taken by round robin or by consent.
Secondly, if, at the meeting, persons entitled to exercise at least 15% of the voting rights oppose the resolution, any person who voted against the resolution may, within 5 business days after the meeting, require the company to obtain the approval of a court to the proposed sale. If the transaction is found to be manifestly unfair to any class of shareholder or tainted by a conflict of interest, the resolution may be set aside.
Thirdly, any shareholder may, before the meeting, give notice to the company objecting to the intended resolution. If the resolution is adopted, the company is obliged to give notice of the adoption of the resolution to that shareholder. That shareholder, if he also voted against the resolution, may thereafter demand that the company offers to buy all his shares in the company at a fair value. Thereafter he ceases to be part of the company.
The procedures above are designed to ensure that minority shareholders receive proper notice of disposals of the major part of a company's assets, and have the option of either resisting the sale or withdrawing from the company.
When buying, from a company, something which appears to be its major asset, do seek professional advice. Failure to comply with all the details could result in an invalid sale, delays or, as often happens, the purchaser's bank declining the loan because of the seller's non-compliance with the formalities
RAF
In Daniels [2011] JOL 27218 (WCC) the High Court set aside a decision by the RAF because it had not, efficiently, in good time and in good faith investigated, processed and made timely concessions of liability in respect of claims. Such conduct by the RAF was found to be an unlawful infringement of the applicant's constitutional rights. Worth a read for RAF practitioners!
PRACTICE
A case which relates to an incident which had passed and could not be undone is moot and should not be decided upon. SATAWU [2011] JOL 27297 (LAC)
WEIRD & WONDERFUL
Shaik on being asked whether he wished to lay an assault charge: "I won't. I am just waiting for my (Presidential) pardon and then I'm going oversees. I am finished with the hole in this country." (Can't Zuma please pardon this guy…?)
"I'm tattoo free. Why would you put a bumper sticker on a Bentley?" Kim Kardashian
Judge Nugent on Public Protector's "whitewash" of the Oilgate saga: "An investigation that is not conducted with an open and enquiring mind is no investigation at all."
"The president and his ministers all preach the good fight against corruption. Here are cases that are imminently winnable after having been investigated in great depth and at great cost, but clearly prosecution was not an option as they involved luminaries close to the president."
Richard Young on crime problems
"He wanted to jump and I said: 'you must do it.' It was easy money."
Roux Shabangu's ex partner
Mladic, the so-called Butcher of the Balkans said: "The whole world knows who I am. I am general Ratko Mladic. I defended my people, my country… now I am defending myself."
|
