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ARTICLE · 31 JULY 2019

Determining Whether A Transaction Is Affected Or Fundamental

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In some instances the board of directors is even required by the Act to take or refrain from taking certain action.

South AfricaCorporate/Commercial Law
Tereza Tabacks
Tereza Tabacks
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In order to identify the category into which a transaction falls, one must first identify whether any of the companies involved in the transaction are regulated companies or not.

There are various commercial transactions that trigger compliance with different rules and regulations recorded in the Companies Act, 71 of 2008 ("Act") and a failure to comply with the rules and regulations applicable to a transaction will have serious ramifications which would include the unenforceability of a transaction. Two categories that are identified by the Act are "affected transactions" and "fundamental transactions".

In order to identify the category into which a transaction falls, one must first identify whether any of the companies involved in the transaction are regulated companies or not.

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