Thesis (LLM)--Stellenbosch University, 2000. / ENGLISH ABSTRACT: Judicial management has been part of South African company law since 1926. It was introduced as a procedure to provide for a corporate rescue. Judicial management has changed little since its introduction. This is in stark contrast with the position in other jurisdictions where the need for improved corporate or business rescue procedures has received considerable attention in the last few decades. This thesis examines the suitability of judicial management as a business rescue procedure for the current South African circumstances and compares it to similar mechanisms in England and Australia. The modem economy relies on credit. Furthermore the globalisation of markets and the increase in competition between enterprises add to the unpredictability of an enterprise's economic circumstances. Thus, one of the important objectives of a corporate insolvency regime is the preservation of viable economic enterprises. A business rescue procedure such as judicial management is therefore an essential component of a corporate insolvency regime. However, judicial management needs reform. The existing shortcomings of judicial management include its high cost, the appointment of professional liquidators as business rescuers, the lack of a business rescue culture, the absence of an approved rescue plan, the treatment of judicial management as an extraordinary measure in corporate insolvency and the use of section 311 of the Companies Act as a corporate rescue mechanism. This thesis proposes that judicial management should commence with a mere resolution by the directors. This is less cumbersome than the existing procedure to commence judicial management comprising a court order. Judicial management triggers a stay of limited duration on legal proceedings that provides an essential breathing space to devise and implement a rescue plan. Once judicial management commences the creditors should hold the power to decide on the future of the company. They can therefore accept or reject a rescue plan (prepared by the judicial manager) for the restructuring of current rights and obligations and for the future management of the company. During judicial management and the execution of the rescue plan, control of the company's assets vests in the judicial manager and directors lose their powers of management. Judicial managers should be encouraged to make a success of judicial management by providing that the judicial manager cannot be appointed as the liquidator in a subsequent liquidation. Furthermore, the burden of the costs of judicial management could be eased by providing a more flexible system for the remuneration of the judicial manager. A statutory business rescue procedure interacts with other components of an insolvency regime and other areas of law. In order to optimise the positive effects of a business rescue procedure certain changes are proposed regarding statutory provisions on insolvent trading, the phenomenon of phoenix companies, section 311 of the Companies Act and tax legislation. The thesis also proposes a smooth transition from judicial management to voluntary liquidation. The thesis has an annexure with draft legislation to give effect to the principal changes proposed by it for the Companies Act. / AFRIKAANSE OPSOMMING: Geregtelike bestuur is reeds sedert 1926 deel van die Suid-Afrikaanse maatskappyereg. Dit is ingestel as 'n prosedure om maatskappye van ondergang te red. Geregtelike bestuur het sedertdien min verander. Dit is in skerp teenstelling met ander jurisdiksies wat die afgelope paar dekades toegewy gewerk het aan prosedures om korporasies en besighede te red. Hierdie tesis ondersoek die toepaslikheid van geregtelike bestuur as 'n prosedure om in die huidige Suid-Afrikaanse omstandighede besighede van ondergang te red en vergelyk dit met soortgelyke prosedures in Engeland en Australië. Moderne ekonomieë se afhanklikheid van krediet, die globalisering van markte en die toename in mededinging tussen ondernemings dra by tot die wisselvallige ekonomiese omstandighede van 'n onderneming. Die redding van lewensvatbare ondernemings is gevolglik 'n belangrike doelstelling van korporatiewe insolvensiereg. Daarom is 'n prosedure soos geregtelike bestuur om ondernemings te red 'n onontbeerlike element van korporatiewe insolvensiereg. Geregtelike bestuur moet egter hervorm word. Geregtelike bestuur het verskeie tekortkominge waaronder hoë regskoste, die aanstelling van professionele likwidateurs as persone om ondernemings te red, die gebrek aan 'n kultuur om ondernemings te red, die afwesigheid van 'n goedgekeurde reddingsplan, die hantering van geregtelike bestuur as 'n buitengewone remedie in korporatiewe insolvensiereg en die gebruik van artikel 311 van die Maatskappywet as 'n meganisme om maatskappye van likwidasie te red. Die tesis stel voor dat geregtelike bestuur met 'n blote direksiebesluit in werking gestel word. Dit is minder belemmerend as die hofbevel waarmee geregtelike bestuur tans begin word. Geregtelike bestuur stel'n moratorium van beperkte duur in werking waartydens geen geregtelike prosesse teen die maatskappyaanhangig gemaak of voortgesit kan word nie. Dit gee die maatskappy die nodige grasie om 'n reddingsplan uit te werk en te implementeer. Opsomming Geregtelike bestuur is reeds sedert 1926 deel van die Suid-Afrikaanse maatskappyereg. Dit is ingestel as 'n prosedure om maatskappye van ondergang te red. Geregtelike bestuur het sedertdien min verander. Dit is in skerp teenstelling met ander jurisdiksies wat die afgelope paar dekades toegewy gewerk het aan prosedures om korporasies en besighede te red. Hierdie tesis ondersoek die toepaslikheid van geregtelike bestuur as 'n prosedure om in die huidige Suid-Afrikaanse omstandighede besighede van ondergang te red en vergelyk dit met soortgelyke prosedures in Engeland en Australië. Moderne ekonomieë se afhanklikheid van krediet, die globalisering van markte en die toename in mededinging tussen ondernemings dra by tot die wisselvallige ekonomiese omstandighede van 'n onderneming. Die redding van lewensvatbare ondernemings is gevolglik 'n belangrike doelstelling van korporatiewe insolvensiereg. Daarom is 'n prosedure soos geregtelike bestuur om ondernemings te red 'n onontbeerlike element van korporatiewe insolvensiereg. Geregtelike bestuur moet egter hervorm word. Geregtelike bestuur het verskeie tekortkominge waaronder hoë regskoste, die aanstelling van professionele likwidateurs as persone om ondernemings te red, die gebrek aan 'n kultuur om ondernemings te red, die afwesigheid van 'n goedgekeurde reddingsplan, die hantering van geregtelike bestuur as 'n buitengewone remedie in korporatiewe insolvensiereg en die gebruik van artikel 311 van die Maatskappywet as 'n meganisme om maatskappye van likwidasie te red. Nadat geregtelike bestuur in aanvang geneem het behoort die krediteure die mag te hê om oor die toekoms van die maatskappy te besluit. Krediteure sou 'n reddingsplan (voorberei deur die geregtelike bestuurder) wat vir die herstrukturering van die regte en verpligtinge van die maatskappy en vir sy toekomstige bestuur voorsiening maak kon aanvaar of verwerp. Gedurende geregtelike bestuur en die uitvoering van die reddingsplan vestig die beheer oor die bates van die maatskappy in die geregtelike bestuurder. Die direksie verloor terselfdertyd alle bestuursbevoegdhede. Geregtelike bestuurders behoort aangemoedig te word om 'n sukses van die geregtelike bestuur te maak deur te bepaal dat 'n geregtelike bestuurder nie as likwidateur aangestel kan word indien die maatskappy uiteindelik gelikwideer word nie. Die las van hoë koste kan verlig word deur 'n buigsame stelsel van vergoeding vir die geregtelike bestuurder in te stel. 'n Statutêre reddingsprosedure vir ondernemings staan in wisselwerking met ander elemente van korporatiewe insolvensiereg en ander regsgebiede. Ten einde die positiewe uitwerking van 'n reddingsprosedure vir ondernemings te optimaliseer word sekere veranderinge ten opsigte van die wetgewing met betrekking tot handeldryf in insolvente omstandighede, die verskynsel van "phoenix" maatskappye, artikel 311 van die Maatskappywet en belastingwetgewing voorgestel. Die tesis stelook 'n gladde oorskakeling van geregtelike bestuur na vrywillige likwidasie voor. Die tesis sluit ook 'n aanhangsel met voorgestelde wetgewing in om uitvoering te gee aan die belangrikste veranderinge aan die Maatskappywet wat in die tesis voorgestel word.

This thesis examines the legal duties of directors of UK public companies in the light of the 'stakeholder' approach to the firm. It considers the theory that directors are not simply agents of shareholders, but have a duty to take into consideration and, where appropriate, to balance the interests of several constituencies. Examples of suggested stakeholders include employees, customers, suppliers and creditors, as well as the local community and the natural environment. If this broad view of public company responsibility is warranted, the role of the law in securing a 'stakeholder' style of management needs to be examined, and this study attempts that task. To this end, empirical research was conducted via interviews with public company directors and secretaries from a range of public companies of different sizes operating in many business sectors to investigate: • the extent to which at present they view their role as requiring assessment and inclusion of the interests of stakeholders • the manner in which such assessment and inclusion is actually carried out • the impact which a statutory formulation of duties to incorporate stakeholder interests would or might have on decisionmaking in practice • the effect of board structure on corporate decisionmaking. The effect of 'stakeholder orientation' of company directors on the economic performance and social impact of UK public companies was considered. The DTI's Company Law Review Steering Group has referred to the distinction between 'Enlightened Shareholder Value' and the 'Pluralist' approach. This thesis further reviews those arguments and seeks to set them in their commercial context. It is highly probable that there will be a new UK Companies Act following the next General Election. This thesis suggests a new statutory statement of directors' duties and considers the impact which such statutory wording might have. If directors' legal duties were to be reformulated, that change would needs to buttressed by a mechanism to protect stakeholder expectations, in court as a last resort. This thesis argues that the most promising form for such stakeholder remedies is that of the current 'unfair prejudice' action. If the UK is to avoid being left behind internationally in its system of corporate regulation, it needs to take its European Union obligations and the laws of other Member States into account. It is argued that the UK can find much to learn from the continental European traditions. The conclusion of the thesis focuses on the Company Law Review and its potential economic impact. It is argued that UK company law should address the rights of all stakeholders if it is to be ‘modern’ and ‘competitive’.

Univ., Diss.--Frankfurt am Main, 2003.

Magister Legum - LLM / An agent acting in excess of his authority creates several legal problems, particularly in company law. In South African law, like in many other legal systems around the world, the interplay between the doctrines of ultra vires and constructive notice has, historically, played a profound role in governing the relationship between a company, its representatives, and outsiders. For decades, the contractual capacity and consequent liability of companies have been guided by thorny and intricate legal principles. This issue has become especially intriguing in light of the changes to the company law regime introduced by the new legislation. The relevant sections of the Companies Act 71 of 2008 (the 2008 Act) that allow for the restriction of a company's powers, require close scrutiny and thoughtful consideration. To that end, this thesis shall examine some of the legal consequences arising from the conclusion by a company's agent of an "unauthorised contract".

Magister Legum - LLM

No abstract available. / Dissertation (LLM (Mercantile Law))--University of Pretoria, 2006. / 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

Background: A business rescue plan has to comply with a new and vague set of obligations regulated by South African legislation. Expectations of the plan are largely unknown, yet crucial in determining compliance. Establishing an effective benchmark for the plan is essential for the growth and success of the industry. Purpose: The study set out to answer these questions: What are the most crucial elements needed to fill the gap between the specifics of the Companies Act (2008) and the further elements needed to meet the plan’s primary objective of providing adequate information to stakeholders? What are the international principles applicable to rehabilitation plans and what elements underpin them? Method: Thirteen industry experts were selected and interviewed to identify the most crucial elements of the business rescue plan. Sampling was a combination of convenience and purposive sampling. Data collection obtained data on subjects’ opinions, rankings, agreement and ratings. Results: The study was able to confirm that there is indeed a gap between the mandatory elements prescribed in section 150(2) and the provision of sufficient information required by section 150(1) of the Companies Act No. 71 of 2008. The survey revealed that in the subjects’ expert opinion, the international principles are applicable to the business rescue plan. Conclusion: The crucial elements of the rehabilitation plan selected by the experts offer insight and clarity in terms of what is expected of the plan. / Dissertation (MCom)--University of Pretoria, 2014 / gm2015 / Business Management / MCom / Unrestricted

The Swedish corporate law scholars have long debated whether there is something similar to the American business judgment rule (BJR) in the Swedish Companies Act (SCA). Recently, the discourse shifted to claim that the BJR exists in Swedish case law and should be introduced in the SCA in the form of a statute. However, the Swedish corporate law scholars have not investigated in much detail whether the BJR should be introduced in the SCA. An eagerness to introduce the BJR might seem bewildering due to the corporate scandals at the beginning of this century and the global financial crisis of 2008–2009. These events left corporate law scholars and those in the business community with the pressing question of whether the board of directors is sufficiently accountable, and the BJR appears to do the very opposite. In view of the foregoing, this thesis examines whether the BJR should be introduced in the SCA. This examination enables a comparative analysis of the liability rules of the board of directors in Sweden and Delaware, which is the dominant source of state corporate law in the United States. This thesis also steps outside traditional legal sources and considers other disciplines such as moral and political philosophy, sociology, and the methodology of law and economics.   This thesis finds that the BJR does not balance the values of the authority of the board of directors and the need to hold it accountable for its decisions and actions in an appropriate manner because it allows the value of authority to completely dominate. An appropriate balance between these values of authority and accountability requires that none of the values be so preeminent that any of them completely dominate. The BJR is made more critical because the Delaware courts apply it generously in favor of the board of directors and adopt an inveterate attitude in cases raising duty of care, thus, weakening the duty of care as a viable and meaningful accountability mechanism. Given these findings, this thesis concludes that the Swedish legislator should only consider introducing the BJR in the SCA if it is articulated in a different way. Alternatively, if it is given a dual function to protect both the authority of the board of directors and the need to hold it accountable for its decisions and actions. The justifications behind the BJR do not change the conclusion because they do not fully defend the existence of the BJR and the dominance of the value of authority. This thesis also considers the benefits of introducing the BJR in the SCA, but they also do not change the overall conclusion.  Instead, the conclusion is strengthened by the fact that a no liability rule can emerge when the BJR is combined with other protective devices in the SCA in the same way as it does in Delaware if the BJR is not modified or given a dual function. The no liability rule appears to deter the threat of legal liability as an effective accountability mechanism, which cannot be defended by either social norms or market forces.

This dissertation critically analyses the business rescue regime, with a specific focus on those attributes of the regime which detrimentally affect creditors. The main aspects which will be critically analysed include, the moratorium, the effect of business rescue on suretyships and the costs of business rescue. Examples will be used to illustrate the ways in which the business rescue regime is disproportionately slanted in favour of debtor companies as opposed to their creditors. Proposals as to how the regime can be developed to balance the competing interests of debtor companies and their creditors will also be made. / Mini Dissertation (LLM (Corporate Law))--University of Pretoria, 2020. / Mercantile Law / LLM (Corporate Law) / Unrestricted