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Filter: COVID-19
The enforceability of restraint of trade agreements in the time of Covid-19

11 February 2021

Did you know that the reasonableness and, by extension the enforceability, of the restraint of trade agreement you might have... in place with regards to employees or directors of your company could be affected by the global pandemic we are currently experiencing?

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529
Article
The Regulations promulgated in order to deal with Covid-19 have severely impacted my business to the extent that we are considering liquidation. Do I have any other options available?

22 May 2020

The Companies Act 71 of 2008 (“Companies Act”) provides the framework to liquidate a company, but also introduced an alternative... to liquidation, namely business rescue proceedings – the biggest advantage of a successful business rescue being that the company continues to exist and employees are retained. However, the disadvantage of both of these mechanisms is that the control of the company no longer lies with the directors and is relinquished to an outsider, namely the liquidator or the business rescue practitioner. Furthermore, the fees and costs payable to the liquidator or the business rescue practitioner are also considerable. If it is intended to secure the continued existence of the business but in a restructured form, section 155 of the Companies Act provides an alternative to both of the above mechanisms: the framework for a company (or a close corporation) to enter into a compromise with its creditors, the result of which is largely the same as a successful business rescue. Given the effect on the economy of the Regulations promulgated to address Covid-19, coupled with the fact that it is illegal for companies to trade when insolvent, the section 155 compromise is an attractive alternative solution to relieve companies of their financial obligations towards creditors and to assist companies in recovering from financial distress.

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361
Article
KNOW YOUR RIGHTS – CANCELLATIONS AND COVID-19

20 March 2020,  Ian van Zyl

Amid all the hysteria surrounding the Covid-19 virus, we as suppliers of goods and services and the consumers thereof have... to take cognisance of the far-reaching effects of the virus on life as we know it. As the virus continues to spread across the globe at an exponential rate, travel bans are imposed or limited travel is encouraged, borders are closed and cancellations of meetings and events have become  necessary within reason or even peremptory, all in an attempt to contain the Covid-19 virus and prevent it from mushrooming. As a result, the questions on the minds of many suppliers and consumers are:  what about flights, trips and events already booked and paid for? Is the supplier, on the one hand, obliged to refund deposits/advance payments in respect of goods which were to be supplied or services which were to be rendered, and on the other hand, is it possible from a  consumer’s perspective to recoup deposits or payments already made in full for goods that would have been supplied or services which would have been rendered?

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1304
Article

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