Thesis (LLM (Mercantile Law))--University of Stellenbosch, 2006. / The research defines derivatives as private contracts, with future rights and obligations imposed on all parties, used to hedge or transfer risk, which derives value from an underlying asset price or index, which asset price or index may take on various forms. The nature of derivatives is that the instruments are intended to be risk management tools. The objectives of derivatives are either to hedge a risk, or to speculate. Derivatives may be classified by the manner in which they are traded, either over the counter (OTC) or on exchange. Alternatively, derivatives may be classified on the basis of structure and mechanisms, i.e. forwards, futures, options or swaps. Risk and risk management are defined in the third chapter with the focus on merchant banking. The nature of risk is that it is inherent in all activities. The nature of risk management is that it aims to ensure that the risks faced by the merchant bank are managed on a daily basis. The objective of risk management is to ensure that losses are minimised and the appropriate level of risk is taken in order to maximise profits. Risk may be classified as operational, operations, market, systemic, credit and legal risk. A comprehensive discussion of credit risk is presented, as it pertains to the legal risk in derivatives in a merchant bank. This includes insolvency, set-off, netting, credit derivatives and collateral. Legal risk is defined as the risk of loss primarily caused by legal unenforceability (i.e. a defective transaction, for instance a contract), legal liability (i.e. a claim) or failure to take legal steps to protect assets (e.g. intellectual property). The nature of legal risk is that it is caused by jurisdictional and other cross-border factors, inadequate documentation, the behaviour of financial institutions, a lack of internal controls, financial innovation or the inherent uncertainty of the law. The objectives of legal risk management in derivatives are to avoid the direct and indirect costs associated with legal risk materialising. This includes reputational damage. Derivatives attract specific legal risks due to the complexity of the instruments as well as the constant innovation in the market. There remains some legal uncertainty regarding derivatives in terms of gaming, wagering and gambling, as well as insurance. The relationship between risk and derivatives is that due to the complexity and constant innovation associated with derivatives, there are some inherent risks to trading in derivatives. It is therefore important to ensure that there is a vested risk management culture in the derivatives trading environment. Chapter four gives an overview of derivatives legislation in foreign jurisdictions and in South Africa. The contractual and documentation issues are discussed with reference to ad hoc agreements, master agreements and ISDA agreements. The practical implementation issues of master agreements and ad hoc agreements are also discussed. The recommendations are that legal risk management be approached in a similar manner to credit, market and other risk disciplines. A legal risk management policy needs to be developed and implemented. The second recommendation is that a derivative to manage the legal risk in derivatives be developed.

Thesis (LLD)--Stellenbosch University, 2013. / Bibliography / ENGLISH ABSTRACT: Arbitration as a mode of dispute settlement has been growing steadily all over the world. The momentum for commercial arbitration in particular was provided by the 1985 UNCITRAL Model Law on International Commercial Arbitration (“the Model Law”). Legislation based on the Model Law has been enacted in many countries. The arbitration laws of three of these countries, Kenya, Nigeria and Zimbabwe, are selected for consideration in this dissertation because of their common origins, similar statutes, similar problems, shared experiences, and their regional distribution. As the writer’s arbitration practice is based in Kenya, that jurisdiction is the primary, albeit not the only, source and foundation for this work, the focal point of reference and the citations from the law and practice incorporated in this research. The work consists of three chapters. Chapter one is a brief introduction and an overview of arbitration. This is followed by the statement of the research question, the justification for the research, methodology and the structure and content of the dissertation. Chapter two describes the legal and contextual framework for the investigation of the research questions in the selected jurisdictions of Kenya, Nigeria and Zimbabwe. Customary Law arbitration is included as a significant feature of African arbitration law. The UNCITRAL Model Law, the Arbitration Act, 1995 (Kenya), the Arbitration and Conciliation Act, 1988 (Nigeria), the Arbitration Act, 1996 (Zimbabwe), the Arbitration Act, 1996 (England), and the South African Draft Arbitration Bill are all used as legislative or statutory points of reference in the discussion of the research questions. Chapter 3 contains the main focus of the dissertation in which six recurrent arbitration problems in Kenya are discussed in the context of domestic arbitration. The research investigates (i) the illusiveness of consent as the basis for consensual arbitration (ii) jurisdictional challenges (iii) the procedural powers of the arbitral tribunal (iv) the disruptive effect of adjournments and postponements on the arbitral process (v) constraints on the granting of interim relief and (vi) the enforcement of the arbitral award. Original, creative and innovative proposals in response to these problems include: the express legislative recognition of the manifestation of consent in both the verbal and written forms of the arbitration agreement, the use of the constructive dispute resolution technique, statutory recognition of customary law arbitration, the use of an expedited arbitration procedure, the award of exemplary and punitive damages in arbitration, a code of sanctions to facilitate the arbitration process, and a simplified method of enforcement and execution of the arbitral award. The dissertation concludes with reflections on the future of arbitration in Africa, and the need for modernization and harmonization of arbitration laws for peaceful resolution of disputes and serious conflicts across Africa. The aim of this study is best illustrated by a short story: In the early nineties there was a man, untrained in any known discipline, who strutted court corridors, trade centres and market places, carrying a placard advertising himself to lawyers, traders and marketers as “An Arbitrator and Private Judge”. He attracted business, charged a handsome percentage fee on the value of the claim, was duly paid, until officialdom caught up with him and put paid to his burgeoning career as “Arbitrator-Judge”. But the reckless enthusiasm spawned by his wit and imagination, and the idiosyncratic practices in dispute resolution persisted and are manifest in Kenyan arbitration culture today. The need to remove bad practices, avoidable impediments, and inefficiency in the arbitration culture of Kenya in order to make its procedures and processes more efficacious, is the heart of this study. / AFRIKAANSE OPSOMMING: Arbitrasie as ‘n wyse van geskilbeslegting is wêreldwyd aan die toeneem. Die 1985 UNCITRAL Modelwetgewing insake Internasionale Kommersiële Arbitrasie het die momentum hiervoor gebied. Talle lande het vervolgens gereageer deur wetgewing geskoei op hierdie model te promulgeer. Die arbitrasiereg van drie lande, tewete Kenia, Nigerië en Zimbabwe, is vir doeleindes van hierdie proefskrif gekies op die basis van gemeenskaplike geskiedenis, soortgelyke wetgewing, soortgelyke probleme, gedeelde ervaringe en regionale verspreiding. Aangesien die skrywer se arbitrasie-praktyk in Kenia gebaseer is, word hierdie jurisdiksie as die primêre, alhoewel nie die enigste, bron en basis vir die navorsing gebruik. Die werk beslaan drie hoofstukke. Hoofstuk een verskaf ‘n kort inleiding tot en oorsig van die reg rakende arbitrasie. Dit word gevolg deur die navorsingsvraag, die rasionaal vir die navorsing, metodiek en die struktuur en inhoud van die proefskrif. Hoofstuk twee bied die regs- en kontekstuele raamwerk vir die ondersoek in die gekose jurisdiksies, nl. Kenia, Nigerië en Zimbabwe. ‘n Bespreking van gewoonteregtelike arbitrasie word ingesluit, aangesien dit ‘n belangrike deel van Arbitrasiereg in Afrika uitmaak. Die UNCITRAL Modelwetgewing, die Wet op Arbitrasie 1995 (Kenia), die Wet op Abitrasie en Konsiliasie 1988 (Nigerië), die Wet op Arbitrasie 1996 (Zimbabwe), die Wet op Arbitrasie 1996 (Engeland) en die Suid-Afrikaanse Konsepwet op Arbitrasie word gebruik as die statutêre basis vir die bespreking van die navorsingsvrae. Hoofstuk 3 handel met die hooffokus van die proefskrif. Ses probleme wat telkemale opduik in die konteks van plaaslike arbitrasies in Kenia, en wat as die navorsingsvrae geïdentifiseer is, word vervolgens bespreek. Hierdie probleme is (i) die ontwykendheid van toestemming as basis vir arbitrasie deur ooreenkoms; (ii) jurisdiksionêre uitdagings; (iii) die proseduele magte van ‘n arbitrasie tribunaal; (iv) die onderbrekende effek van verdagings en uitstelle van arbitrasie-verhore; (v) beperkinge op die verlening van tussentydse regshulp, en (vi) afdwinging en uitvoering van die arbitrasie-toekenning. Oorspronklike, kreatiewe en innoverende voorstelle as antwoord op hierdie probleme sluit in: die uitdruklike statutêre erkenning van toestemming tot arbitrasie in beide mondelinge en geskrewe vorms; die gebruik van konstruktiewe dispuutoplossingstegnieke; statutêre erkenning van gewoonteregtelike arbitrasies; die gebruik van ‘n versnelde arbitrasie-prosedure; die verlening van skadevergoeding in die vorm van ‘n strafbedrag; ‘n kode van sanksies om die arbitrasie proses te fasiliteer; en ‘n vereenvoudigde wyse waarop arbitrasie-toekennings afgedwing en uitgevoer kan word. Die proefskrif sluit af deur die toekoms van arbitrasie in Afrika te bespreek, asook die behoefte aan modernisering en harmonisering van arbitrasiereg ten einde geskille dwarsoor Afrika op ‘n vreedsame wyse te kan besleg.

Thesis (LLM (Mercantile Law))--University of Stellenbosch, 2007. / The collapse of Enron, WorldCom and other companies and the worldwide adoption of codes of good corporate governance have highlighted the poor standard of corporate governance systems and brought about big changes in this field. Corporate scandals in Britain and South Africa have contributed to greater local awareness of the failings of traditional company governance. In the Anglo-Saxon system non-executive directors are important watchdogs over powerful executive directors and other managers who are in a position to abuse their powers to the disadvantage of the shareholders. As independent supervisors non-executive directors are in a position to protect the interests of shareholders and prevent the manipulation of power relationships by executive managers. Independent supervision is of the outmost importance to ensure effective corporate governance. It contributes to the objectivity of the decision-making process and also to the appointment of other efficient non-executive directors. Independence of non-executive directors is influenced by the limited candidates in the pool from which they are appointed. This leads to a limited number of non-executive directors serving on multiple boards of directors, which in turn compromises their independent supervision function. The promotion of diversity on company boards, can expand the “limited gene pool” of non-executive directors. The question arises whether black economic empowerment, as a mechanism to promote greater diversity, has in South Africa contributed to a wider gene pool from which non-executive directors are appointed? In this study it is concluded that, instead of widening the gene pool of non-executive directors, black economic empowerment is creating a second “gene pool” of black directors who serve on multiple boards and with potential implications for their independence.

Thesis (LLM (Mercantile Law))--University of Stellenbosch, 2005. / The concept of affirmative action, in contrast to discrimination, does not have a universal uniform meaning. On the one hand affirmative action can be seen as an attempt to promote equal opportunities for individuals or groups previously disadvantaged by discrimination. On the other hand, its application is controversial when black people, women and disabled people are given preference, for example, when decisions are made that preclude the appointment of better-qualified candidates. Affirmative action therefore has pros and cons, depending on the approach adopted. In South Africa affirmative action, as defined in s 15 of Employment Equity Act 55 of 1998 (EEA), is seen as a measure that ensures equal employment opportunities and equitable representation of suitably qualified people from designated groups. Affirmative action thus enjoys legislative recognition and is judicially developed by the courts. Nonetheless the concept is problematic. A specific concern is the fact that the meaning of affirmative action is even more elusive when the conceptual relationship to discrimination and equality is examined in an effort to identify its theoretical foundation. Affirmative action is aimed at pursuing working conditions that promote a real, and not just theoretical, realisation of rights. It focuses on addressing the burden of discrimination, which is still borne by certain groups in society. In Harmse v City of Cape Town [2203] 6 BLLR 557 (LC), the court found that the broader idea of constitutional equality implies that the elimination of unfair discrimination includes affirmative action. The court based its reasoning on s 9(2) of the equality clause of the Constitution, wherein provision is made for measures, such as affirmative action, that are “designed to protect or advance persons, or categories of persons, disadvantaged by unfair discrimination…” In Dudley v City of Cape Town [2004] 5 BLLR 413 (LC) the court found that the EEA distinguishes between the prohibition of unfair discrimination and affirmative action, as contained in chapters II and III of the Act, regarding approach, aim and application. This however does not imply that the two concepts are in no way connected. Another area of concern relates to doubts surrounding the effectiveness of affirmative action. The gender gap in the workplace becomes apparent when the labour market composition is taken into consideration. This emphasises the fact that affirmative action is not accomplishing sufficient transformation to further equality in the workplace. The origin of the problem lies in the fact that the impact of affirmative action depends on the approach to equality (be it formal equality, equality of opportunities or substantive equality) that it is designed to promote. Another affirmative action dilemma is the problem of enforcement of measures of this nature. Other alternatives, such as diversity management where both the employer and the employees benefit, should possibly be considered as a method of effectively empowering women to ensure that they can compete successfully with men in the labour market. Diversity management ultimately appears to have a social, as well as an economic advantage in the development of equitable representation of disadvantaged groups in the labour market.

Thesis (LLD (Mercantile Law))--University of Stellenbosch, 2010. / ENGLISH ABSTRACT: International sales contracts have very specific needs that stem from the multiplicity of legal systems which apply to such contracts. In addition to harmonised law, mercantile custom is able to address many of these needs. Mercantile custom represents usages which are clear, certain and efficient and are expected to be known and applied by merchants in a particular trade or region. To this extent mercantile custom fulfils an automatic harmonisation function. However, where a custom does not enjoy uniform application across all branches of trade, the harmonisation function of mercantile custom is limited, as is the case with trade terms. Trade terms reflect mercantile customs and usages which developed over a long time in order to simplify the trade in goods that are transported from one place to the other. They regulate the delivery obligations of the seller and buyer as well as associated obligations such as the passing of risk. Trade terms negate the need for elaborate contract clauses and appear in abbreviated form in contracts of sale. Although they provide a uniform expression of mercantile custom in a particular location or trade, the understanding of trade terms tend to differ from country to country, region to region or from one branch of trade to the next. The ICC INCOTERMS is an effort to standardise trade term definitions at the hand of the most consistent mercantile customs and practices. The aim of this study is to investigate the efficiency of INCOTERMS as a form of standardisation in international sales law. For purposes of the investigation the focus is limited to the passing of risk. Although national laws usually have a default risk regime in place, merchants still prefer to regulate risk by means of trade terms. This study will investigate the legal position in the case of FOB, CIF and DDU terms. An analysis of the risk regimes of a few selected national systems will show that each has their own understanding of these trade terms. The United Nations Convention on Contracts for the International Sale of Goods (CISG) does not refer to trade terms, but many commentators have concluded that the CISG risk rule is consistent with INCOTERMS. The study will discuss this in more detail. To determine the efficiency of INCOTERMS as a form of standardisation in international sales law, the study examines their characteristics, legal nature as well as their limited scope of regulation. Specific emphasis is placed on the interplay between the CISG and INCOTERMS and the possibility of some form of interaction and collaboration between the two instruments. It is concluded that collaboration between INCOTERMS and the CISG adds value to the international law of sales by increasing the efficiency of an international business transaction and thereby facilitating international trade. / AFRIKAANSE OPSOMMING: Internasionale koopkontrakte het spesifieke behoeftes wat voortspruit uit die veelvoudigheid van regstelsels van toepassing op so ‘n kontrak. Baie van hierdie behoeftes kan aangespreek word deur geharmoniseerde regsreëls in samehang met handelsgewoontes en –gebruike. Handelsgewoontes verteenwoordig duidelike, seker en effektiewe gebruike. Daar word dus van handelaars wat in ‘n bepaalde bedryf of streek handel dryf, verwag om van hierdie gebruike kennis te neem en hulle toe te pas. In hierdie konteks vervul handelsgebruike ‘n outomatiese harmoniseringsfunksie. Waar ‘n gebruik nie eenvormig toegepas word oor alle bedrywe heen nie, is die harmoniseringsfunksie van handelsgebruike egter beperk. Handelsterme bied ‘n tipiese voorbeeld hiervan. Handelsterme verteenwoordig bepaalde handelsgewoontes en –gebruike wat oor ‘n geruime tyd ontwikkel het ten einde handel in goedere wat van een plek na die ander vervoer word, te vergemaklik. Hulle reguleer die leweringsverpligtinge van die verkoper en koper asook ander verpligtinge wat met lewering verband hou, soos byvoorbeeld die oorgang van risiko. Handelsterme doen weg met lang en omslagtige kontraksbedinge aangesien hulle in die vorm van afkortings in die kontrak figureer. Alhoewel handelsterme ‘n uniforme uitdrukking van gebruike in ‘n bepaalde gebied of bedryf verteenwoordig, is dit egter so dat die inhoud van handelsterme van land tot land, streek tot streek of van een tipe bedryf tot die ander verskil. INCOTERMS is ‘n poging om die inhoud van handelsterme te standaardiseer aan die hand van die mees eenvormige handelsgewoontes en –gebruike. Die doel van hierdie studie is om die effektiwiteit van INCOTERMS as ‘n vorm van standaardisering in die internasionale koopreg te ondersoek. Vir doeleindes van die ondersoek word die fokus beperk tot die oorgang van risiko. Al het nasionale regstelsels gewoonlik ‘n verstek risiko-reël in plek, verkies handelaars steeds om risiko by wyse van handelsterme te reguleer. Die studie ondersoek die regsposisie in die geval van FOB-, CIF-, en DDU-terme. ‘n Analise van risiko-regulering in ‘n aantal nasionale sisteme toon dat elk hul eie betekenis heg aan die inhoud van hierdie terme. Alhoewel die Weense Koopkonvensie geensins na handelsterme verwys nie, voer verskeie kommentatore aan dat die Konvensie se risiko-bestel verenigbaar is met dié van INCOTERMS en sal hierdie aspek gevolglik in meer besonderhede in die studie aangespreek word. Ten einde die effektiwiteit van INCOTERMS te bepaal, word daar ondersoek ingestel na hulle kenmerke, regsaard en beperkte aanwendingsgebied. Spesiale klem word gelê op die wisselwerking tussen die Weense Koopkonvensie en INCOTERMS asook die moontlikheid van interaksie en samewerking tussen die twee instrumente. Die gevolgtrekking is dat interaksie tussen die Koopkonvensie en INCOTERMS waarde toevoeg tot die internasionale koopreg deur die effektiwiteit van die internasionale besigheidstransaksie te verhoog en gevolglik internasionale handel te bevorder. / Harry Crossley Fund / NRF Thuthuka Fund

Thesis (LLD)--Stellenbosch University, 2013. / The general public should have wide access to copyrighted materials for education and research. However, since the current copyright law system subtly favors copyright holders, it is time to re-evaluate copyright law to ensure it meets its original purpose of promoting the learning of the society. The research primarily focuses on how to broaden copyright limitations and exceptions for the public to access and use learning materials. Within the framework of the copyright law system, other mechanisms that allow users to access copyrighted materials at a reasonable price also are considered. Such mechanisms include an efficient collective copyright management system and various licensing schemes. In an information network environment, it is time for developing countries to reform copyright law in order to promote education and research. It is hoped the findings of this study not only benefit South Africa and People's Republic of China, but also provide insights and guidelines to other developing countries with similar conditions.