When a preference share is in essence a “loan” the doctrine of simulation will be applied by our Courts. A non-payment indemnity given by the company to the holder of a preference share may result in SARS treating the preference share as a loan to the company.
In South Africa, security over financial instruments is typically established through a pledge, cession in security, or a combination of...
Directors often delegate certain functions and tasks to company employees or rely on the advice of experts. However, under South African...
In South Africa, banking and finance transactions often involve suretyships and guarantees. A guarantor's obligation depends on what the...