South Africa: Corporate and Company Law

The Tax Court in Cape Town has ruled on a dividend stripping arrangement used in the sale of a self-storage business, applying South Africa's general anti-avoidance rules to a structure where shareholders attempted to convert taxable capital gains into exempt intercompany dividends. Following the Constitutional Court's recent decision in Absa Bank Ltd v SARS, the Court examined whether a pre-acquisition dividend funded by the purchaser's subscription served any purpose beyond tax avoidance, and whether the

A South African court has delivered a decisive ruling on the limits of post-employment competition, finding that two senior employees unlawfully used their former employer's proprietary software, client relationships, and confidential information to launch a competing business. The judgment reinforces that fiduciary duties can extend beyond employment termination and that building a business on a former employer's investment constitutes unlawful springboarding rather than legitimate entrepreneurship.

When choosing a business name, many founders overlook the hidden risks of selecting something that echoes a famous brand or cultural reference. A recent trademark dispute involving Taylor Swift demonstrates how brand associations—not just identical names—can create serious legal and commercial problems that extend far beyond registration formalities.