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October 2017

Appraisal Remedy - Independence in Context

In the previous newsletter, I set out the purpose of the appraisal remedy, and how a dissident investor would engage the remedy, from a procedural point of view. In this post, I will discuss how a company undertaking a fundamental transaction may prevent or avoid an adverse appraisal of the fair value of its shares.

Prepared by Adam Pike on behalf of Moore Stephens
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National Treasury Softens Stance on Tax Exemption for Foreign Employment Income

National Treasury has confirmed that the tax exemption for foreign employment income, as contained in section 10(1)(o)(ii) of the Income Tax Act, will be amended to allow for the first R1 million of foreign remuneration per year to be exempt from tax in South Africa if the individual is outside of South Africa, for a certain period of time. This is a welcome change from Treasury’s previous stance on the matter, which proposed a complete repeal of the exemption, with foreign remuneration consequently fully taxable in South Africa.

Peter Wiese
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Economic and Market Overview

Global Real global economic growth has tilted up and is approaching the long-term trend of 3.5% per annum, and yet global interest rates remain at depressed levels. At 1.25%, the Federal Reserve’s Fed funds rate is high when measured against its peers (Bank of England’s clearing bank rate at 0.25% and the European Central Bank’s repo rate effectively at 0%). Yet it is by no stretch of the imagination high when measured against historical levels.  Monetary policymakers, especially outside of the US, are particularly dovish and very careful not to stifle economies with near-term interest rate increases. There are, however, pockets of strong growth around the world – the aggregate real GDP growth of emerging markets averages nearly 5% at the moment. Sadly, South Africa is the worst performing of these markets at around 0.5%.

Analytics
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Manage Risk While Optimising and Sustaining Your Company’s Growth

The world of risk is changing. Challenging economic times, volatile world events and fast-changing technology are leaving organisations more vulnerable than ever. Given these factors, it is much harder to predict where new risk will come from. 

Moore Stephens MWM Insurance Advisory (Pty) Ltd
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Self-Insurance: Manage Risk While Optimising and Sustaining Your Company’s Growth

Did you know that alien abduction insurance has been available in the USA since 1987? Today, it would be unusual to find someone who has not purchased some form of insurance, whether it be for his/her car, home, life or business. Insurance gives us the financial security against unforeseen, calamitous and sometimes tragic events, with insurers providing policies for these risks, and many, many others.

Moore Stephens MWM Insurance Advisory (Pty) Ltd
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