The Companies and Intellectual Property Commission (CIPC), acknowledges the impact that the COVID- 19 pandemic and the national lockdown, in terms of the Disaster Management Act, has had on companies and close corporations and may continue to have in the near future. With the move of South Africa to lockdown level 1 and the re-start of the economy, it is imperative that all entities re-commence with their regulatory compliance obligations.
Government’s Response To The Rating Actions Of S&P Global Ratings, Fitch Ratings And Moody’s Investors Service
Government’s policy priorities remain on economic recovery and fiscal consolidation, as outlined in President Cyril Ramaphosa’s Economic Reconstruction and Recovery plan and the Medium-Term Budget Policy Statement released in October. The social compact agreed to between government, business, labour and civil society prioritises short-term measures to support the economy, alongside crucial structural economic reforms.
CIPC has released a quick reference guide designed to highlight specifically, although not exclusively, critical issues of the Companies Act No. 71 of 2008 that a director should be aware of. The central message of this guide, which is divided into 10 basic markers, is that a director of a company when acting in that capacity:
When Covid-19 arrived in the country at the beginning of March 2020, it was evident from the experience of other countries that this would have significant health, economic and social ramifications for South Africa.
Since the May meeting of the Monetary Policy Committee (MPC), the Covid-19 pandemic continues to spread globally, with wide-ranging and deep social and economic effects. Current forecasts from the IMF show global Gross Domestic Product (GDP) contracting by about 4.9% this year. The deepest contractions are expected in the second quarter of 2020, with gradual recoveries in the third and fourth quarters of the year. The strength of the global economic recovery will depend in part expectations of future growth in investment and productivity.
On the 17th of June, President Ramaphosa signed the final enabling legislation to finally give effect to POPI with effect from 1st July 2020. Although it comes into full force, businesses have until the end of June 2021 to comply with the ACT.
All persons who are able to work from home must do so. However, persons will be permitted to travel to and from work and for work purposes under Alert Level 3, subject to-
The past two months of lockdown have been difficult for the tourism sector. Many businesses in the sector are fighting for survival and projections showed that almost 600 000 jobs were at risk if the sector doesn’t come into operation by September 2020. This reality led to both government and private sector working together to be both innovative and putting protocol guidelines to get the sector back into operation.
To qualify for the COVID-19 Tax Relief for PAYE, employers, must:
Below is a table of the 5 different levels from the Alert System and what restrictions would be implemented depending on the severity level:
Post the national lockdown, there will be a few restrictions that will stay in place regardless of the level of alert in any given period:
To see whether a sector will gradually resume activity or not, 3 criteria must be checked:
Though the national lockdown has shown early evidence on how it has successfully helped to flatten the curve and limit the spread of Covid-19, there are numerous risks if the lockdown is lifted too quickly or without any strategy.
The Minister of Finance has announced the following exceptional tax measures as part of the fiscal package outlined by President Cyril Ramaphosa on 23 March 2020 in his speech on the Escalation of Measures to Combat COVID-19. These measures are over and above the tax proposals made in the 2020 Budget on 26 February 2020. The tax adjustments are made in light of the National State of Disaster and due to the significant and potentially lasting negative impacts on the economy from the spreading of the COVID-19 virus. There is a critical need for government interventions to assist with job retention and assist businesses that may be experiencing significant distress. These measures include:
Increasingly, governments and businesses recognise that the world faces a climate crisis, and acknowledge the need for partnerships to limit global warming to below 1.5° C. As the Paris Agreement becomes operational in 2020, signatories will submit revised nationally determined contribution commitments to mitigate climate change. A range of legislation and policies are being developed to meet South Africa’s commitments in this regard.
Over the last few months, Minister Mboweni has made a number of telling tweets that has caused the ruling party to distance themselves from his tweets and haul him over the coals! However it would appear that the minister is being a realist and his tweets are more like an impassioned plea for all to understand the predicament we are in. An extract from a recent speech by Minister Mboweni, points out the key reforms that are needed to facilitate the following:
A good start to the new year when the Reserve bank announced a surprise reduction of 25 basis points to the repo rate. Good news for those with borrowings and the forecast is that we should get another cut in the 4th quarter 2020.
The 2019 MTBPS has been presented by Minister Tito Mboweni. His opening statement was a reference to the Aloe Ferox plant he brought to Parliament when presenting the February 2019 budget.
In a very recent public spat, the board of Old Mutual and its CEO have had an acrimonious relationship, with the CEO wanting to declare the entire board of Directors delinquent after having been fired for conflict of interest. Being declared a delinquent director is not a common occurrence and we thought it may well be of interest to list the ground for Delinquency.
The Minister of Finance, Mr Tito Mboweni, called on members of the public to make comments on a paper titled: “Economic transformation, inclusive growth, and competitiveness: Towards an Economic Strategy for South Africa”.
Since the 1980’s there has been a global movement towards sustainability and sustainable development – as countries and governments have realised that economic development at the cost of destroying the planet’s natural resources and social equity does not lead to long-lasting prosperity.
The cabinet has finally approved the National Health Insurance (NHI) bill for tabling in Parliament, as announced by Minister in the Presidency for Planning, Monitoring and Evaluation: Jackson Mthembu.