July 2019


Editor's Note - July 2019 Editor's Note July 2019

This month's issue starts with an area of the law infrequently covered in without prejudice and highlights the fact that legislation, despite good intentions, can result in greater hardship for those directly affected by that law.

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Sureties and business rescue – you can run but you can’t hide Company Law July 2019

It is trite law that the liability of a surety is unaffected by the business rescue of the principal debtor, unless the business rescue plan makes specific provision for the situation of sureties. However, in practice, sureties continue to try to avoid liability under their suretyship agreements.

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Flirting before the offer - The Intricacies of Approaching Shareholders Company Law July 2019

Do you remember your first school dance? The awkwardness in trying to connect with someone you liked, in circumstances where you know what you want but don't quite understanding the rules of how to get there. With everyone watching.

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Patel arises Platteland Perspective July 2019

After he was knocked over by a bus in the UK, Sudhirkumar Patel collapsed. Near death, he was revived by an onlooker. But that was just the first miracle. When he came home following time in hospital, he seemed to be almost completely unresponsive. He lay on his bed, virtually unmoving, with two top medical specialists unable to say what was wrong with him. Then the bus company he was suing for damages made some inquiries of their own, and was shocked to see that he could walk and displayed none of the symptoms that had so puzzled the medical fundis.

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Tales from the US of A... - July 2019 International July 2019

Number of lawyers in the USA

The total number of active lawyers at the beginning of 2019 was 1 352 027. The five states with the highest number of resident active attorneys are [1] New York (182 296) [2] California (170 117) [3] Texas (91 244) [4] Florida (78 448) and [5] Illinois (62 720). In 2009, when 40 of America's 50 states provided data, 69% of lawyers were men and 31% were women. In 2019, 44 states provided data that shows 64% of active lawyers are men and 36% are women. In 2019, only 20 states provided data on race and ethnicity; 85% of lawyers in those states identify as Caucasian or white, 5% as African-American or black, 5% as Latino, 2% as Asian, 2% as multiracial, and 1% as Native American. - Debra Cassens Weiss June 3

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The World in June - July 2019 International July 2019

Asurvey of 53 economists published by the National Association for Business Economics, which is considered a leading barometer of where the US business community thinks the economy is heading, indicates a recession by the end of 2020. US banks and business leaders are concerned about President Donald Trump's protectionist trade policies and believe a recession is inevitable if the trade war between America and China continues.

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BANKING & FINANCE IN AFRICA - Introduction BANKING & FINANCE IN AFRICA FEATURE July 2019

Banking has come a long way: from grain loans to digital banking and now cryptocurrency banks are on the horizon. For everyone from, in all probability, the Baby Boomer Generation to Generation Z, the changes have been dramatic.

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TO BE OR NOT TO BE: NATIONALISATION OF THE SOUTH AFRICAN RESERVE BANK BANKING & FINANCE IN AFRICA FEATURE July 2019

Governments and Central Banks

Governments throughout the world are ultimately responsible for monetary and fiscal policy within the economy of their respective jurisdictions. They need to guide the overall pace of economic activity by striving towards maintaining steady growth, high levels of employment and price stability. From the mid-seventeenth century onwards central banks were established by governments as important mechanisms for addressing the monetary demands of economies and the health of financial systems. It resulted in the typical noncommercial, non-profit maximising public interest nature of central banks, normally subject to various forms of government supervision or control.

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WILL THE CHICKENS OF CORRUPTION COME HOME TO ROOST? BANKING & FINANCE IN AFRICA FEATURE July 2019

In the past two decades countries across the globe have committed to combatting money laundering (ML) and terrorist financing (TF). South Africa has been a global player with a robust economy and one of the most efficient and modern financial sectors in the world, committed to its role as a country focused on protecting the global financial system against money laundering and terrorist financing.

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THE BUCK STOPS HERE BANKING & FINANCE IN AFRICA FEATURE July 2019

Public Audit Amendment Act

South Africa has been riddled with the mismanagement and mishandling of taxpayer's monies. Over the years, not only has this led to the erosion of the tax base due to ever increasing unemployment, but there has been an axiomatic and glaring lack of government accountability and transparency.

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COMBATING MONEY-LAUNDERING AND TERRORISM FINANCING IN EAST AFRICA BANKING & FINANCE IN AFRICA FEATURE July 2019

Money laundering and terrorism financing pose momentous threats to security and development efforts worldwide and progressively undermine the integrity of the global financial system. Just like terrorism financing, money laundering thrives on anonymity and opacity, which is why the United Nations Office on Drugs and Crime describes it as "the process that disguises illegal profits without compromising the criminals who wish to benefit from the proceeds.'' Money laundering accounts for up to 5% of global GDP - or $2tn (£1.5tn) - every year, according to the UN.

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EVERYONE’S CUP OF COFI? BANKING & FINANCE IN AFRICA FEATURE July 2019

It is fair to say that there has been a steady increase in financial sector conduct regulation over the past decade, not only in South Africa but indeed globally. Some financial industry experts are of the opinion that this is evidence of a true paradigm shift towards the redesign of the global financial industry.

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IS THERE A TIME LIMIT FOR CONCLUSION OF A NCA CREDIT AGREEMENT? BANKING & FINANCE IN AFRICA FEATURE July 2019

Background

Before concluding a credit agreement, a credit provider must provide a consumer with a quotation which (with a few exceptions) is open for acceptance by the consumer, for five business days. The quotation reflects the credit approval and constitutes a specific credit offer which binds the credit provider for those five days.

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KEEPING UP WITH COMPETITION LAW: KEY DEVELOPMENTS ACROSS AFRICA IN THE FIRST HALF OF 2019 BANKING & FINANCE IN AFRICA FEATURE July 2019

Although we are only halfway through the year, there have already been significant competition law developments across Africa. A number of new authorities have become operational and various legislative changes have been effected, impacting the competition law landscape in several jurisdictions. All these changes are a reflection of the need for developing countries to not only have competition law but to also ensure that competition law is effective for competition regulation in a globalised economy. Keeping abreast of these developments is essential in mitigating regulatory risks.

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