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All news by: Matthew Delaney, Resolve Corporate Services

Independent Directors and SME’s

The Companies Act does not set out what would be considered an independent director nor, for that matter, does it distinguish between executive and non-executive directors. Matthew Delaney looks at Independent Directors and SME's.

Friendly Share Buy-Backs and Section 48(8) Of the Companies Act

The share buy-back has long been an effective manner to consolidate ownership within a company. A share buy-back in many instances is also attractive from a tax perspective because it is considered a dividend and thus does not give rise to a capital gains event. Share buy-backs are governed by Section 48 of the Companies Act 71 of 2008 (“the Act”), which allows the Board of Directors (the “Board”) of a company to determine that the company will acquire its own shares, subject to a solvency and liquidity test. Matthew Delaney Legal Consultant at Resolve Corporate Services takes a closer look.