Home » Archive

Articles in the Legal News Category

Credit Law, Headline, Legal News »

[7 Mar 2016 | No Comment | ]
Prescribed Rate of Interest Act Changes Explained

The Prescribed Rate of Interest Act (Act 55 of 1975) sets the maximum rate of interest that can be charged on mora interest (over-due payment) and is also used in court orders relating to damages claims.
Mora interest applies where payment is due and the rate of interest has not been agreed between the parties. In order for a creditor to become entitled to such interest there has to be demand made for payment or a due date for payment. The creditor is then entitled to charge mora interest from such …

Debt Collections, Featured, Legal News »

[15 Feb 2016 | No Comment | ]
Submission on Debt Collectors Amendment Bill

 

In October of last year the Department of Justice and Constitutional Development published a draft Debt Collectors Amendment Bill. The main amendment to the Debt Collectors Act was the proposed inclusion of attorneys into the ambit of the Act.
As I had not seen any research or motivation in this regard I wrote to the Deputy Minister of Justice and Constitutional Development, Mr J Jeffery to ask what the motivation was and he was kind enough to take the time out of his busy schedule to reply (a copy of the letter …

Credit News, Featured, Legal News »

[29 Jan 2015 | No Comment | ]
The Prescribed Rate of Interest to be linked to the Repo Rate

In July last year we wrote on the first change to the interest rate in terms of the Prescribed Rate of Interest Act in over 20 years.
Yesterday the Department of Justice and Constitutional Development announced an Judicial Matters Amendment Bill, which included a fixed method of calculating and making the Prescribed Rate of Interest more market related.
The relevant part of the Departments news Statement read:
“At present the Prescribed Rate of Interest Act, 1975, provides that if a debt bears interest and the rate at which the interest is to be calculated …

Credit Law, Legal News »

[21 Apr 2011 | No Comment | ]
New Companies Act Implementation and Regulations

The new Companies Act that was to have come into effect on the 1st September 2010 and then was delayed until the 1st April 2011, now appears to be on track for the 1st May 2011, according to the Department of Trade and Industry with the President having signed the amended Act and proclamation.
The new company regulations and forms are now also available on the CIPRO website.

Credit Law, Featured, Legal News, National Credit Act »

[12 Apr 2011 | 5 Comments | ]
Amendments to Administration Orders on Route

While the Department of  Trade and Industry seems to charge into legislation like a bull in a china shop (see previous articles on the National Credit Act, the Consumer Protection Act and the new Companies Act), the department of Justice seems to be adopting a more measured and consultative approach.
In March 2008 we pointed out that South African Law had proposed abolition of administration orders under Section 74 of the Magistrates Court Act, in light of the introduction of debt counselling  in terms of the National Credit Act. An administration …

Featured, Legal News »

[31 Mar 2011 | One Comment | ]
New Companies Act Delayed Again

The confusion and uncertainty that seems to surround most Department of Trade legislation these days continues. The new Companies Act that was so much of a dog’s breakfast in it’s original form that it required an amendment before implementation appears to have been delayed again. This because the amendment Bill to try correct all the grammatical and reference errors has not be signed by the President, who is currently out of the country.
The Amended Companies Act was meant to have come into operation at the end of September last year was delayed …

Legal News »

[2 Aug 2010 | No Comment | ]

Business Day reports that an amended version of the new Companies Act , which had been botched by the Department of Trade and Industry was published on the 28th July 2010.
Sanchia Temkin for Business Day:
“…..(the DTI) released the latest copy of the amended Companies Act, which has addressed significant grammatical errors and concerns about flaws in the legislation.
However, company law experts said yesterday that the Companies Act of 2008 had been “commercially flawed” and a “source of embarrassment” to start with.
“A series of grammatical errors and typos was used …

Credit Law, Featured, Legal News, National Credit Act »

[21 Jul 2010 | No Comment | ]
New Case: Marrying S58 Consent to Judgments to the National Credit Act

The most recent significant case impacting on the National Credit Act is the currently unreported decision in the case of African Bank Limited v Additional Magistrate Myambo NO and Others (34793/2008) [2010] ZAGPPHC 60 (9 July 2010), in which Judge Du Plessis gave another declaratory judgment on various provisions of the NCA, this time in regard to the application of Section 58 of the Magistrates Court.
Section 58 is a provision of the Magistrates Court Act which allows a debtor who has received either a summons or an appropriate letter of …

Credit Law, Featured, Legal News »

[15 Jun 2010 | One Comment | ]
Issues to consider When Using Cession of Book Debts

In a previous article we looked at the various different forms of security that a  commercial creditor providing credit to legal entities with limited liability can use to secure their debt. To view the article click here.
One of the more common forms of security used by commercial creditors is the cession of book debts.

A cession is the act by which a person/entity (known as the cedent) transfers their personal right to another (known as the cessionary). By signing a cession of book debts a debtor therefore agrees to transfer to …