The objective of this study is to do critical analysis if the new Companies Act, with specific reference capital maintenance rules. Furthermore, this study will compare the current Companies Act with the new Companies Act, with a specific focus on sections 44, 45 and 48 of the new Companies Act and their comparison to sections 38, 85 and 226 of the current Companies Act. The next objective is to establish what impact the new piece of legislation will have on South African companies and whether the deficiencies in the current Companies Act have been addressed by the new Companies Act. The final objective is to establish whether this new piece of legislation gives adequate protection for the shareholders of a company. This study will focus on certain aspects of capital maintenance and excludes a comprehensive study of the capital maintenance rules, as the focus will be on certain sections in the current Companies Act and also the new Companies Act. This study will focus on the comparison between the new and current Companies Act. Furthermore, the focus will also be on the protection of the creditors of a company when analysing the different sections of the current companies act and the new companies act. / Dissertation (LLM)--University of Pretoria, 2011. / Mercantile Law / unrestricted

No abstract available. Copyright / Dissertation (LLM)--University of Pretoria, 2010. / Mercantile Law / unrestricted

In conducting this study I want to give more clarity about the New Companies Act and how it compares to the Current Companies Act. According to the study and the results, the New Companies Act gives more protection to, specifically the shareholders and the creditors. The New Companies Act is much wider in some instances and gives more clarity. On the other hand the are still a lot of aspects that needs to be addressed. In this study I took a look at Sections 38, 226 and 85 of the Current Companies Act and then I compared it to Sections 44, 45, and 48 of the New Companies Act. With all the changes that have been brought to the New Companies Act it now, puts South African Law in line with the International standards of Company Law. Copyright / Dissertation (LLM)--University of Pretoria, 2010. / Mercantile Law / unrestricted

Despite the impressive progress over the last two decades in which millions of people worldwide have gained first time access to improved water and sanitation infrastructure, the reality for many is that shortly after infrastructure construction the actual service received by users slips back to unacceptably low levels. However, due to inadequate research and inconsistencies with how data and cost data has been collected and reported, very little is known of the necessary levels of expenditure required to sustain an acceptable (so called “basic”) water and sanitation service and this inhibits effective financial planning for households, communities, governments and donors alike. This thesis sought to provide a better understanding of what has historically been spent to provide different levels of water and sanitation services as a means to better understand the necessary expenditure required. Empirical findings are based on a large data sample of nearly 2,000 water points, over 4,000 latrines, and over 12,000 household surveys, which have been collected as part of three research projects (WASHCost, Triple-S, and WASHCost Sierra Leone), across five country research areas (Andhra Pradesh (India), Burkina Faso, Ghana, Mozambique, and Sierra Leone). Findings for water supply systems show that the combination of high capital investments of: $19 and $69 per person for community point sources and $33 – $216 per person for piped systems; and low recurrent expenditures of: $0.06 - $0.37 per person per year for point sources and $0.58 - $7.87 per person per year for piped systems; results in less than half of users receiving a “basic” level of service. Evidence based estimates of the required expenditure for acceptable services are found to be far greater than the “effective demand” expressed in terms of the willingness to pay of service users and national government for these services. Findings for sanitation show that constructing a household latrine that achieves “basic” service standards requires a financial investment of at least $40 that is likely to be an unaffordable barrier for many households in lower income countries. In addition the costs and affordability of periodic pit emptying remains a concern. Ultimately this research suggests that if international standard of improved water and sanitation services are to be sustained in rural areas, the international sector will likely have to provide additional investments to meet a significant proportion of the recurrent costs of delivering these services.

The master's thesis focuses on the accounting concept of profit or loss. In the first part, the contemporary approach to the issue from both theoretical and practical point of view is described with the main focus on the determination of the distributable profit. The capital maintenance and value measurement are also dealt with for this purpose. Following the theoretical basics laid down in the previous part, the main approaches of classical balance theories are explained and their advantages and disadvantages pointed out in relation to their possible use in practice. The thesis contains illustrative examples and ends with a draft of a usable methodology based on the various concepts described in the text.

This research examines the impact of certain bank-specific variables on bank stability in Ghana, in the context of the existing regulatory structures. The thesis examines this issue along two main themes. The first part of this study examines whether two of the commonly used measures of banking stability, the CAMELS and the Z-Score, provide similar or different results in assessing the stability of banks in Ghana. The results of this study show that the use of the CAMELS and the Z-score measures could lead to different outcomes in terms of bank stability in Ghana. This suggests that the traditional micro-prudential CAMELS framework should be complemented with the Z-score which inherently has both micro and macro-prudential characteristics of signaling weaknesses in bank stability, and to enhance the management of bank stability. The second part of the study examines the impact of some bank-specific variables on bank stability. Using the panel data approach, the results show that while bank size, regulatory governance, regulatory independence and origin impact significantly on the stability score, there was no significant impact in terms of interbank borrowing and non-performing loans. Further analysis using the Blinder –Oaxaca decomposition also suggests that foreign banks in Ghana exhibit relatively higher levels of stability compared to local banks. The policy implications of these findings suggest that the liberalisation of the banking sector should be accompanied by an effective micro- and macro-prudential supervisory regime in order to manage the stability of the constituent banks and the banking sector as a whole.

This research examines the impact of certain bank-specific variables on bank stability in Ghana, in the context of the existing regulatory structures. The thesis examines this issue along two main themes. The first part of this study examines whether two of the commonly used measures of banking stability, the CAMELS and the Z-Score, provide similar or different results in assessing the stability of banks in Ghana. The results of this study show that the use of the CAMELS and the Z-score measures could lead to different outcomes in terms of bank stability in Ghana. This suggests that the traditional micro-prudential CAMELS framework should be complemented with the Z-score which inherently has both micro and macro-prudential characteristics of signaling weaknesses in bank stability, and to enhance the management of bank stability. The second part of the study examines the impact of some bank-specific variables on bank stability. Using the panel data approach, the results show that while bank size, regulatory governance, regulatory independence and origin impact significantly on the stability score, there was no significant impact in terms of interbank borrowing and non-performing loans. Further analysis using the Blinder –Oaxaca decomposition also suggests that foreign banks in Ghana exhibit relatively higher levels of stability compared to local banks. The policy implications of these findings suggest that the liberalisation of the banking sector should be accompanied by an effective micro- and macro-prudential supervisory regime in order to manage the stability of the constituent banks and the banking sector as a whole.

The capital maintenance rules stem from the English company law and were primarily aimed at protecting the rights of a company’s creditors. Before the introduction of the Companies Amendment Act 37 of 1998, a company was prohibited from purchasing its own shares. After this legislation was passed, a company was able to do so, provided that it satisfied the solvency and liquidity test and also complied with the new statutory provisions set out by sections 85 to 89 of the Companies Act 61 of 1973. Section 48 of the Companies Act 71 of 2008 now regulates the acquisition by a company of its own shares, as well as the acquisition of shares in its holding company by a subsidiary company. The above actions also fall under the ambit of a “distribution” as defined in the Act and therefore need to satisfy the requirements of section 46 of the Act as well. Unlike its predecessor, the provisions in the new Act are very broad and devoid of guidelines. The emphasis is placed on companies satisfying the principles of solvency and liquidity. Non-adherence to these provisions gives rise to the personal liability of the company’s directors. The provisions of section 48 do not apply where a dissenting shareholder exercises his appraisal rights in terms of section 164 of the new Act, or where a company redeems redeemable securities. These exceptions do, however, still amount to “distributions” and will accordingly need to satisfy the requirements contained in section 46 of the Act. Redeemable securities were initially not exempted from the provisions of section 48. This would potentially have given rise to a situation where a company could approach a court in terms of section 48(6) to reverse a redemption of its securities. It would have had dire consequences for financing by way of redeemable securities. In terms of the Companies Amendment Act 3 of 2011 redeemable securities are now specifically exempted from the provisions of section 48. In terms of the new Act a subsidiary company is allowed to purchase shares in its holding company to a maximum of 10% in the aggregate of the issued shares of any share class, provided that no voting rights attached to such shares may be exercised. The new Act fails to properly address some of the issues regarding the “round-tripping” of dividends and the declaration of a dividend in specie that were already identified as far back as 2001. Where the consideration for a repurchase constitutes a “dividend” as defined in the Income Tax Act 58 of 1962, the company will be liable to pay secondary tax on companies in respect thereof. If a distribution does not constitute a dividend, capital gains tax is payable with regard to it. Share repurchases are allowed in terms of Canadian corporate law after the legislative reform which occurred in that country during the 1970’s. The Canadian Business Corporations Act contains provisions that bear a striking resemblance to the provisions of the new Act adopted in South Africa. Whilst the basis and rationale behind the new corporate legislation cannot be faulted, a host of issues and concerns still remain. The unfortunate consequence is that the new Act lacks transparency and is fraught with clumsy errors. Copyright / Dissertation (LLM)--University of Pretoria, 2012. / Mercantile Law / unrestricted

This graduation thesis is concerned with impacts on equity which are caused by some of selected operations with company (whole company investment, merger). The explanation of essence and elements of equity is basis of understanding. Particular operations with company are specified in light of commercial law, accountancy and taxes. Special attention is paid to questions of revaluation. The application of different valuation base has got a fundamental impact upon value and structure of equity.

The Companies Act 71 of 2008 (“2008 Companies Act”) will have far reaching effects on the manner in which a company is formed and operated under South African company law and in particular entrenches the procedure that must be followed by a company when acquiring its own shares. The radical amendment of the capital maintenance rules by the introduction of the solvency and liquidity tests to the Companies Act 61 of 1973 has been carried forward under the 2008 Companies Act. These tests impose an obligation on a company to ensure that the company is both solvent and liquid at the time of the acquisition of its own shares and for a stated period thereafter. The 2008 Companies Act further brings the duties and liabilities of the directors in line with their current fiduciary duties in terms of common law. / Mercantile Law / LLM