National Credit Act: Do you need to be registered?

Does your company provide credit facilities to consumers? 

Is your company registered with the National Credit Regulator as a Registered Credit Provider? 

It is important to note that the exemption from the requirement to register as credit provider does not mean that the National Credit Act does not apply. 

Credit providers who have less than one hundred credit agreements on their books, incidental credit excluded, and the total value of those agreements are less that R500 000.00 do not have to register in terms of section 40 as credit providers with the National Credit Regulator (‘NCR’).

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Drunk Driving 101: The basics

Drunk Driving is one of the biggest threats to Road Safety in South Africa. Research indicates that 50% of people who die on the roads have a blood alcohol concentration above 0.05 gram per 100 millilitres. 

The National Road Traffic Act (NRTA), Act 93 of 1996 as amended.

Section 65: 

Driving while under the influence of intoxicating liquor or drug having narcotic effect, or with excessive amount of alcohol in blood or breath: 1. No person shall on a public road – (a) drive a vehicle; or (b) occupy the driver’s seat of a motor vehicle the engine of which is running, while under the influence of intoxicating liquor or a drug having a narcotic effect.

Blood Alcohol Content (BAC) limits: 

Concentration of alcohol in blood: 0,05 gram per 100 millilitres (all drivers), professional drivers: 0,02 gram per 100 millilitres. 

Breath alcohol content: 0,24 milligrams per 1000 millilitres (all drivers), professional drivers: 0,10 milligrams per 1000 millilitres. 

What if you are caught?

If you are caught driving under the influence of alcohol (above the limit), you have committed a criminal offence.

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Liquidation of a Company or Close Corporation

Under the Companies Act of South Africa(1973) 

There are many grounds available to creditors and/or members of a company or close corporation to launch liquidation proceedings. Normally liquidation proceedings will be launched by a creditor of a company or close corporation because that company or close corporation is unable to effect payment of a debt due and owing to the creditor. In that instance, the creditor can apply to Court for the liquidation of that South African company or close corporation.

Provisional Liquidation 

The company or close corporation (voluntary liquidation) or the creditors (compulsory liquidation) apply to the high court to place it in liquidation. The court hears the application and appoints a provisional liquidator to manage the company with the interests of the creditors in mind. The court makes an order which will stipulate a time period by which the liquidator must report to the court on the status of the company or close corporation.

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Law Societies of South Africa

The Law Society of South Africa promotes the substantive transformation of the legal profession through its leadership role; represents and promotes the common interests of the profession, having regard at all times to the broader interests of the public, whom the profession serves; empowers the profession by providing training to candidate attorneys and continuing professional development to attorneys to ensure quality legal service to the community in an ethical, professional, competent and caring manner. 

Visit the The Law Society of South Africa’s website here: http://www.lssa.org.za

There are also a number of Regional Law Societies to which attorneys are members of.

Law Societies of the Northern Provinces (Gauteng, Mpumalanga, Limpopo, North-West Province) 
Cape Law Societies (Western Cape, Eastern, Northern Province) 
KwaZulu Natal Law Societies (KwaZulu Natal) 
Free State Law Societies (Free State)

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How to do an accurate Accrual Calculation

Let’s look at a practical example of an accrual calculation. Let say a couple got married in early 2000 with an ante nuptial contract which included the accrual system.

This is how things stood at the beginning of the marriage:

1. Husband owned a home worth R350,000 at the time and also a car worth R120,000.

2. Wife owned furniture worth R60,000 and a car worth R85,000.

3. Their combined assets stood at R615 000, with the husband responsible for R470 000 thereof and the wife the remaining R145 000.

4. Neither had any liabilities.

An accrual calculation should the marriage dissolve in 2010:

The husband’s home is now worth R1,500,000 and his latest car is valued at R350,000.

The wife in the meantime had built up a collection of furniture worth R450, 000 and also owned a new car worth R240,000. 

Her dad had also left her a holiday home which was currently worth R750, 000

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Drafting a Letter of Demand

Almost every business in the world is going to experience a time when a customer fails, refuses or neglects to pay an invoice, and the business is then left with a bad debt in their books. The issuing of a legal letter of demand is traditionally the first step taken in order to recover that bad debt from the customer, and is sometimes a prerequite step before you can commence legal proceedings against the customer in a Court of law.

The letter of demand traditionally sets out the facts that gave rise to the debt, advises the customer as to certain rights that the customer has, and then demands payment of that outstanding debt by a certain date. The letter of demand can also advise the customer that the business will accept payment of the debt by way of monthly instalments, however this is not necessary.

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