Our South African bi-annual Corporate Law Update for August 2024 has been published and is available here.
It covers general trends, recent regulatory developments and material case law that may be of interest. Key highlights are as follows below.
The South African economy is showing signs of a promising transformation, with the formation of a government of national unity sparking optimism and collaboration between the Government and the private sector. Inflation rates are receding, and the energy sector is making progress, with the longest period without load-shedding since 2020 having been recorded. These improvements are expected to stimulate M&A activity, which has been relatively slow but is poised for recovery due to regulatory reforms and increased foreign direct investment.
We are seeing key deal success factors linked to valuations, financing and management of the regulatory environment (competition and sector-specific). We are also seeing an uptick in the prevalence of ESG due diligence and warranties, greater focus on the negotiation of the transitional services agreement and interim period undertakings, and increased focus on supply-side risk mitigation.
Regulatory developments include proposed amendments to the Companies Act, exchange controls, public procurement, retirement fund and employment equity laws. There are rapidly evolving developments in the competition/ antitrust regulatory space and, as a consequence of technological advancements, we are seeing many sector regulators reshaping compliance strategies.
Relevant for listed companies, there have been an unprecedented number of changes to the listing requirements as the Johannesburg Stock Exchange undertakes various initiatives to simplify and cut red-tape.
Recent case law impacting business, can be broadly categorised into cases dealing with corporate governance, public access to financial statements, B-BBEE, contracting, competition law and retrenchments, and tax. They highlight the evolving nature of corporate law and the need for businesses to stay informed and adapt to the changing legal environment.
