Monthly Archives: January 2017

How to register a new company

a1bThe basic steps to register a company under the Companies Act of 2008 at the Companies and Intellectual Property Commission (CIPC) involves certain forms and supporting documentation that must be lodged and the accompanied fees paid.

The steps

The first step in registering a new company is optional. A CoR9.1 form must be completed and lodged with the CIPC in order to reserve a name for the company to be registered. However, the Act does make provision for a company to be registered without a name. The company registration number will then be the name of the company until such time as the company properly registers a name. A certified copy of the identity document of the applicant must be submitted as supporting documentation with this form and a filing fee is payable.

The next step is to complete and lodge the CoR14.1 Notice of Incorporation form together with the CoR15.1 Memorandum of Incorporation.

The Notice of Incorporation specifically contains information regarding the type of company to be registered, the incorporation date, financial year end, registered address, number of directors and the company name if applicable. A certified copy of the identity document of the applicant must be submitted as supporting documentation and a filing fee is payable. A CoR14.1A form contains specific information about the directors of the company who will be appointed at registration, and this form must be lodged together with the Cor14.1. Certified copies of the identity documents of all directors to be appointed must be submitted as supporting documentation. An optional form CoR14.1D may be lodged together with the CoR14.1, which indicates any company appointments to be registered with the CIPC, such as a company secretary or auditor.

The Memorandum of Incorporation is probably the most important document when registering a company, since the provisions contained herein will govern the company. It can be short and simple, or long and extremely technical, depending on what type of company is being registered. In this regard, it is best to seek professional advice. The supporting documentation and filing fees applicable will depend on what type of Memorandum of Incorporation is being registered.

If an auditor or company secretary is appointed at registration as contained in the CoR14.1D, a CoR44 form must also be completed and submitted. No filing fee is payable for this form. An original acceptance letter and certified copy of the identity document of the auditor or company secretary must be submitted as supporting documentation.

The CoR21.1 Notice of Registered Address must be completed with the particulars of the registered address of the company. Again a certified copy of the identity document of the applicant must be submitted as supporting documentation, but no filing fee is payable.

Once all the necessary forms and supporting documentation has been submitted and applicable fees paid, the CIPC will issue a Registration Certificate form CoR14.3 if it is satisfied that all provisions in the Act has been satisfied.

Any changes to the information placed on record at the CIPC at the original registration of the company, must be registered without delay and on the proper forms and possible payment of applicable filing fees.

This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your legal adviser for specific and detailed advice. Errors and omissions excepted (E&OE)

What to do after a car accident?

If a driver of a vehicle, at the time when the vehicle is involved in or contributes to any accident in which any person is killed or injured or suffers damage in respect of any property, including a vehicle, or animal, must report the accident to a police or traffic officer at the scene of the accident as soon as possible, unless he or she is incapable of doing so by reason of injuries sustained by him or her in the accident. In the case where a person is killed or injured, it must be within 24 hours after the occurrence of the accident, or in any other case on the first working day after the accident.

What must a person do after a motor vehicle accident (“accident”)?

  1. Call the police or report the accident at the nearest police station within 24 hours if a person is killed or injured, or on the first working day after the accident if no person was killed or injured.
  1. Write down the name of the police officer spoken to and the accident report’s reference number.
  1. Co-operate with all emergency personnel and police who respond to the accident.
  1. Get the details of all other motor vehicles involved in the accident, such as the drivers’ names, identity numbers, addresses, telephone numbers, description of the motor vehicles, the registration numbers, and any relevant details from the licence discs; the date, time and address of the accident; the weather and road conditions when the accident occurred; and any other information that may be relevant.
  1. If an employee is driving a motor vehicle on behalf of his/her employer, then the details of the driver and the employer must be taken.
  1. Write down the names, addresses, and phone numbers of all potential witnesses of the accident.
  1. Take photographs or a video of the following: the scene of the accident, from all angles; the surrounding area; the injuries; and any damage to property.
  1. Draw a sketch plan of the scene of the accident and make sure that it contains a fixed point so that it can easily be traced. Also make a statement about how the accident happened. This sketch and statement will remind a person of all the details relating to the accident at a later stage.
  1. If a person has been injured, a doctor must be consulted immediately, even if the injury is not serious.
  1. If the person is insured, that person has to notify his/her insurance or broker as soon as possible. Write down the name of the person spoken to at the insurance and the reference number of the claim.

What must a person NOT do after an accident?

  1. Move his/her motor vehicle; unless it is necessary for safety or required by law.
  1. Subject himself/herself to further injury by standing or waiting in an area near traffic or other safety hazards.
  1. Leave the scene of an accident until the police tell him/her to do so.
  1. Throw away any potential evidence, such as defective products, important documents, or torn or blood-stained clothing.
  1. Engage in discussions of fault with anyone as that can be considered evidence in court – do not admit liability.
  1. Agree to settlement terms without discussing the matter with an attorney.

Although involvement in a motor accident is always a traumatic experience, try to remember that nearly all accidents have legal consequences. For instance, a criminal charge of driving without a licence, drunken driving or culpable homicide may follow. Civil consequences may include claims for damage to property, or for personal injury, and may arise whether there is a criminal charge or not.

References:

This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your legal adviser for specific and detailed advice. Errors and omissions excepted (E&OE)

Bail in South Africa

a3bIn any court case when a person is arrested, the accused person remains to be presumed not guilty until the court finds such person guilty.  In our law no one may be detained without trial. If an accused is arrested, he or she is normally kept in prison or the police cells till the trial is finalised to ensure the presence of the accused at court.

If the person wishes not to be imprisoned pending the finalisation of the trial, he or she may apply to the court to be released on warning or on warning with some conditions attached or on bail (with or without conditions).  Bail is the sum of money paid to the court or to the police. Bail is granted more readily when the accused is not a flight risk and can easily be found by law enforcement agencies. There is usually bail conditions set by the presiding officer that the accused must comply with.

What information should be obtained from the accused once s/he has been arrested?

  • When was the accused arrested?
  • What was the accused arrested for?
  • Where is the accused being detained?
  • What is the case number?
  • Who is the investigating officer?
  • What is the personal information of the accused, such as his/her name, surname, residential address, identity number, place of work, marital status, number of children, and next of kin?

Where can a person apply for bail?

The accused or his/her legal representative can apply for bail at the police station before the accused’s first court appearance, or at court.

What should a person do if bail is granted at the police station?

  • The amount set by the police official should be paid and the accused will be released from custody.
  • The police official will give a receipt and notice indicating the alleged criminal offence together with the date and time the accused should appear at court.

If the prosecution does not oppose the granting of bail, it does not automatically mean the court will grant bail. The court still has a duty to weigh up the personal interests of the accused against the interests of justice.

It is important to note that any person who has been released on bail and who does not, without good cause, appear at court on the due date, remain in attendance until the proceedings are complete, or who fails to comply with bail requirements, is guilty of an offence and will be liable to a fine or to a term of imprisonment not exceeding one year.

References:

This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your legal adviser for specific and detailed advice. Errors and omissions excepted (E&OE)

Compensation for a fatal holiday resort accident

a4bEmily and Nathan were a happily married couple in their early thirties with two minor children. Emily was a stay at home mom and Nathan was the breadwinner of the family. The family decided to take a vacation in Sun City, which ended tragically when Nathan was fatally injured on a Valley of the Waves ride. Who was to take care of the family now that Nathan was no longer there and who was to pay the price for the family holiday that ended in a tragic loss?

Negligence

If the question of negligence is hanging in the air, then the obvious word to pop into one’s mind would be that of delict. In Kruger v Coetzee 1966 (2) SA 428 A 430E-G the formulation for negligence was established by Holmes in two steps:

(a) a diligens paterfamilias in the position of the defendant –

  • would foresee the reasonable possibility of his conduct injuring another in his person or property and causing him patrimonial loss; and
  • would take reasonable steps to guard against such occurrence; and

(b) the defendant failed to take such steps.

In the case of Za v Smith (20134/2014) [2015] ZASCA 75 (27 May 2015) the father and breadwinner of the family died in a tragic accident while on vacation at a mountain resort close to Ceres, Western Cape, after falling off a sheer precipice (a steep rock or cliff). The wife of the deceased took the matter to the Supreme Court of Appeal, who considered three elements, namely wrongfulness, negligence and causation.

The background facts were taken into account, namely the fact that the park was used for recreational purposes for the public upon paying an entry fee. Furthermore, the 150 metres gorge drop where the deceased fell to his death was not visible, especially in snowy weather, nor were there any warning signs.

Wrongfulness

The court a quo did not find the Respondents to be wrongful as they did not have the duty to warn guests of the danger that was blatantly apparent to them. However, in the above-mentioned case it was reiterated that the test for wrongfulness is whether it would be reasonable to have expected the defendant to take positive measures, while the test for negligence is whether the reasonable person would have taken such positive measures. Confusion between the two elements is almost inevitable. It would obviously be reasonable to expect the defendant to do what the reasonable person would have done. The result is that conduct which is found to be negligent would inevitably also be wrongful and visa versa.”[1]

Conclusion

If the above-mentioned case is taken into consideration then Emily would most likely be successful in her application for compensation for herself, as well as in her capacity as mother of the two minor children, if it is found that Sun City Holiday Resort was negligent and wrongful and had causation.

Reference:

  • [1] Za v Smith (20134/2014) [2015] ZASCA 75 (27 May 2015)

This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your legal adviser for specific and detailed advice. Errors and omissions excepted (E&OE)