Research Articles (Mercantile Law)

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A catch-22 situation : bringing an interim application to have a high court tax dispute heard behind closed doors
Meyer, Carolina (Nelson Mandela University, 2025-10-01)
The phrase “a catch-22” situation was coined in the popular novel Catch-22 by Joseph Heller to illustrate the absurd constraints put on soldiers during World War II. The character, Doc Daneeka, invokes the phrase to explain that pilots who request mental evaluations in order to be declared unfit (not sane enough) to fly an aircraft (to escape dangerous missions) are paradoxical, as the pilots had the rationality of mind to make the request for the medical evaluation in the first place (Heller Catch-22 (1961) ch 5). The phrase typically refers to a contradictory situation where one cannot escape the relevant rules or regulations.
The issue of "tax bracket creep" in South Africa : potential solutions
Meyer, Carolina (University of the Free State, 2025-06-30)
The majority of South Africans felt relieved when Finance Minister, Enoch Godongwana, did not announce any noticeable tax hikes during his annual National Budget Speech on 21 February 2024. Nevertheless, the same South Africans were probably in a worse financial situation after the fact, due to a lesser-known tax principle called “tax bracket creep”. This hidden tax increase in the 2024 Budget Speech was the absence of any changes to the progressive tax rate table for individuals to account for inflation. Furthermore, the Minister did not increase the tax rebates for individual taxpayers from the rates set in the previous year – South African taxpayers were thus doubly pressed. If a person received a salary increase tied to inflation, they may have ended up worse off, because their higher taxable income may have pushed them into a higher tax bracket and resulted in them being taxed at a higher rate due to tax bracket creep. Simultaneously, the taxpayer’s tax rebate was also not adjusted upward to account for inflation. The phenomenon of tax bracket creep is recognised globally but remains unregulated in numerous countries. I believe it presents a simple way for governments to collect more taxes subtly. It is solely the government’s decision whether or not to adjust the South African progressive tax rate table for inflation, as there is no automatic link between the tax rate table and inflation. In my paper, I analyse the principle of tax bracket creep, and also consider the global situation regarding the regulations required to address such a tax bracket creep (such as automatic tax indexation of the personal income tax table). I further consider if regulations or relief can be put into place in South Africa to address the detriment of the tax bracket creep to the South African individual taxpayer.
The evolution of the right to freedom of association
Le Roux, Rochelle; Newaj, Kamalesh (Juta and Company (Pty) Ltd., 2025-04)
Although individual jurisdictions have since developed their own nuances, the right to freedom of association in the labour context in jurisdictions acknowledging such a right stem from the Freedom of Association and Protection of the Right to Organise Convention 87, adopted by the International Labour Organisation (ILO) in 1948. In South Africa, this right is emphasised in ss 18 and 23 of the Constitution, with further regulation provided by the Labour Relations Act (LRA). Many of the provisions in the LRA can potentially raise issues, but this article focuses on its explicit expression in chapter II of the LRA. The article examines several contentious aspects of this chapter: the lack of a registration requirement for trade unions, the definition of ‘lawful activities’ for unions, an employee’s right to join a union ‘subject to its constitution,’ and whether a right not to associate can be inferred. It further considers the interface between the right to freedom of association and closed and agency shop agreements. The conclusion is that, despite South African courts generally adopting a liberal understanding of the right to freedom of association, their approach regarding employees’ rights to be represented by chosen trade unions has been surprisingly conservative.
The reasonableness of the insurer’s repudiation of permanent disability claim caused by trauma : PWR v Discovery Life Ltd [2023] ZAGPJHC 282
Padayachy, Thiruneson (Nelson Mandela University, 2025-08)
The recent High Court judgment in PWR v Discovery Life Ltd ([2023] ZAGPJHC 282) (PWR) is of considerable interest. First, and most obviously, it addresses the vexed question of whether the insured, who had suffered a string of deeply traumatic events that left him with a combination of post-traumatic stress disorder and unspecified bipolar mood disorder, was totally and permanently unable to carry on his profession as a stockbroker when the cover expired on 30 November 2015. The answer to the first-tier question depends on two key issues. The initial issue concerns whether the insured’s condition, and the incapacity it triggered, had become permanent by 30 November 2015. The second is whether, if the insured’s condition had become permanent on 30 November 2015, the insurer was nevertheless justified in repudiating the claim. That question invites consideration of the appropriate test to be applied in assessing a life-insurance company’s repudiation of a claim. It cannot be gainsaid that in cases of mental illness brought on by trauma, there will inevitably be a lag between the advent of the permanent incapacity and the point at which anybody can say that the incapacity is enduring. The nature, causes and consequences of the insured’s condition, coupled with an assessment of the insurer’s reaction to the insured’s claim, call for academic comment.
Judicial review of trade remedies in Egypt
Ramatabane, Tshepo; Brink, Gustav Francois (Kluwer Law International, 2025-09)
Since 1997, Egypt has become one of the biggest users of trade remedies in Africa, which raises the possibility of judicial review. Despite the establishment of specialized Economics Courts, the Administrative Court, Cairo division – commonly known as State Council – has exclusive jurisdiction in trade remedies matters. All judicial reviews must be lodged with the competent court by a lawyer whose name appears on the roll list of the lawyers admitted to Administrative Court within sixty days of the publication of the investigating authority’s final decision. The state Commissioner, which mostly consists of magistrates and retired judges, will assess the merits of the review and prepare a case for the judges. Judges do not have access to confidential information submitted in investigations and typically only consider administrative procedures to the exclusion of substantive issues. The Courts tend to rely on the use of outside experts, which cause significant delays in finalization of reviews. The Administrative Court may either find in favour of the applicant or the respondent and to date has never referred a decision back for reconsideration by the investigating authority or the Minister. Any Administrative Court decision may be appealed to the Supreme Administrative Court as the apex of the Administrative Courts may be appealed within sixty days from the date the Administrative Court hands down its decision. If appealed, the whole judicial review process could take as long as five years.
The role of consumer courts and the motor industry ombudsman of South Africa in the realisation of rights for consumers : a critical analysis of Kwazulu-Natal Consumer Protector V Jatru Trading (Pty) Ltd T/A Trucking Traders [2023] Zanct 14
Scott-Ngoepe, Tshepiso (Juta and Company (Pty) Ltd, 2024-12)
Disputes permeate all transactions and agreements, and consumer transactions are no exception. The Consumer Protection Act 68 of 2008 (‘CPA’) introduced a dispute resolution framework that is intended to apply to the resolution of consumer disputes (see s 69 of the CPA). The objectives of the CPA are, amongst other things, to ensure that consumers have access to speedy and efficient systems of redress in general; and to afford consumers and suppliers the opportunity to subject their disputes to consensual dispute resolution processes (see s 3(1)(g) and (h) of the CPA). Provincial consumer courts and accredited industry ombuds are components of the CPA’s dispute resolution process and play an important role in giving consumers access to redress. However, it is necessary to consider the extent to which these bodies are effective and, at times, whether they are acting within their powers. Where these consumer protection bodies are found to be lacking in light of these considerations, possible solutions should be tabled with the intention of improving access to redress for consumers. Accordingly, the purpose of this case note is to examine the role played by the Motor Industry Ombudsman of South Africa (‘MIOSA’) and the KwaZulu-Natal Consumer Tribunal (‘KZN Tribunal’) in the resolution of a consumer dispute in the matter of KwaZulu Natal Consumer Protector v Jatru Trading (Pty) Ltd t/a Trucking Traders [2023] ZANCT 14 (‘Jatru Trading’).
The impact of voidable disposition laws on companies placed in liquidation after business rescue
Van Wyk, Jani Sita; Boraine, A. (Andre), 1957- (LexisNexis, 2025)
Please read abstract in article.
The implementation of the basel D-SIB framework assessment methodology for systematically important banks in South Africa
Lichaba, Mamofana Florina; Van Heerden, C.M. (Corlia) (LexisNexis, 2025)
Please read abstract in article.
Post-commencement finance creditors and post-commencement creditors – one and the same? Mashwayi Projects (Pty) Ltd v Wescoal (Pty) Ltd 2025 3 SA 441 (SCA)
Swart, Willem Jacobus Christiaan (LexisNexis, 2026-02)
Hierdie vonnisbespreking is 'n kritiese oorweging van die Hoogste Hof van Appèl se beslissing in Mashwayi Projects (Pty) Ltd v Wescoal (Pty) Ltd 2025 3 SA 441 (SCA), waarin die hof moes beslis wie almal as krediteure beskou moet word vir doeleindes van stemming oor 'n voorgestelde ondememingsreddingsplan ingevolge Hoofstuk 6 van die Maatskappywet 71 van 2008 (die Wet). Strydig met die beslissings van die verhoorhof, wat beslis het dat slegs skuldeisers ten tye van die aanvang van ondernemingsredding mag stem, het die Hoogste Hof van Appèl bevind dat die term "skuldeiser", soos gebruik in die betrokke bepalings van die Wet, sy gewone grammatikale betekenis behou en dus beide voor- en na-aanvang skuldeisers insluit, tensy die Wet uitdruklik anders bepaal. Die hof het voorts bevind dat 'n beperkende uitleg wat na-aanvang skuldeisers van stemming uitsluit, moontlik ongrondwetlik sal wees aangesien dit indruis teen die reg op gelyke beskerming in artikel 9 van die Grondwet van die Republiek van Suid-Afrika, 1996. Hoewel die beslissing die regsposisie van na-aanvangsfmansierings skuldeisers versterk, word in hierdie vonnisbespreking betoog dat die hof se uitlegmetodologie problematies is. Die hof het versuim om die term "skuldeiser" in konteks uit te lê met inagneming van die struktuur en doelstellings van Hoofstuk 6, soos voorgeskryf in artikel 5 van die Wet. Spesifieke verwysings na die statutêre raamwerk, insluitend bepalings wat betrekking het op 'n "geaffekteerde persoon", kompromieë met skuldeisers, en die prioriteitsreëling van eise ingevolge artikel 135, is onvoldoende verreken. Voorts word die regsposisie van Mashwayi Projects herbeskou. Hoewel die eise aan Mashwayi ná die aanvang van die ondememingsreddingsproses gesedeer is, het die eisoorsaak onderliggend aan die eis reeds voor daardie tyd bestaan. Daar word geargumenteer dat die fokus eerder op die ontstaan van die eis, en met die identiteit van die houer nie, behoort te val. Die hof se klassifikasie van Mashwayi as 'n na-aanvangsfmansierings skuldeiser is dus onvanpas. Die gevolgtrekking word gemaak dat alhoewel die beslissing van die HHA prakties voordelig mag wees vir die doeltreffende funksionering van ondernemingsreddings-prosesse, die hof onvoldoende gevolg gegee het aan 'n sistemiese en doelgerigte uitlegbenadering wat die Wet vereis, en dus 'n wanbalans geskep het tussen die belange van voor- en na-finansierings skuldeisers.
The capital buffer regime for SIFI-banks (D-SIBs) in South Africa
Lichaba, Mamofana Florina; Van Heerden, C.M. (Corlia) (Pretoria University Law Press, 2025)
This contribution examines the potential harmful effects of adopting the international rules known as the Basel Accords on small local banks in developing countries. It argues that while these uniform global financial stability rules may be tenable for larger, often foreign-owned banks, they often place a heavy burden on small financial institutions with limited capital and weak financial resources. This is important because small banks play a vital role in economic growth and financial inclusion in developing nations, particularly in underserved communities in Zambia and other developing countries. The strict capital requirements and increasing regulatory complexity mandated by the Basel Accords risk forcing small banks to either consolidate their market position by merging with larger banks to survive or risk falling into insolvency, thus reducing the number and the role of small banks in an economy. To address this issue, the contribution suggests pragmatic, alternative regulatory frameworks. Key recommendations include, amongst other things, implementation of tiered capital requirements that reflect a bank's size and risk profile, offering targeted government support like “infant industry” support, and fostering a regulatory environment suited to the specific challenges faced by smaller institutions. By adopting customised policies, regulators can safeguard the sustainability of small banks and ensure they remain a crucial driver of economic development.
Some comparative notes on anti-discriminatory credit laws regarding rehabilitated and unrehabilitated insolvent debtors
Mabe, Zingapi; Boraine, A. (Andre), 1957- (Pretoria University Law Press, 2025)
During the sequestration process, an insolvent debtor is not only exposed to employment disqualifications but also to credit limitations, restricting the debtor from obtaining credit and participating in the economy. While these credit limitations may be justifiable during the sequestration process for public policy reasons, credit limitations that extend after the insolvent has been rehabilitated appear discriminatory against honest debtors. This is because the incentives for rehabilitation may include a debtor obtaining a fresh start through discharge from all pre-sequestration debts, the removal of insolvency disabilities, which include the restoration of full contractual capacity and, most importantly, the opportunity to start afresh, free to become an economically active member of society again. The question that will be addressed in this article is whether, in light of the international notion of a fresh start through discharge and the South African insolvency and credit laws, a rehabilitated debtor is indeed given a new opportunity to resume economic activity. More importantly, what does rehabilitation aim to achieve, and what ‘harm’ needs to be avoided to circumvent the discrimination of honest debtors once a debtor is rehabilitated? This article will address some of these questions by discussing the guidelines for an effective insolvency system according to the World Bank Report. Some comparative notes on anti-discriminatory credit laws in jurisdictions such as the United States of America and the United Kingdom will also be discussed. The antiquated rules of rehabilitation in South African insolvency law and credit limitations imposed on unrehabilitated and rehabilitated insolvent debtors in South Africa will be noted, and, lastly, the rationale for such limitations and the right to equality of rehabilitated debtors in South Africa will be analysed.
Abuse of process : its place in the criminal justice system, and remedy or remedies?
De Villiers, Wium P. (LexisNexis, 2025-11)
Die doel van hierdie aantekening is om ondersoek in the stel hoe die leerstuk van misbruik van proses in die bestaande Suid-Afrikaanse strafregstelsel inpas. Dit bespreek ook of opskorting van die vervolging steeds die enigste remedie in die strafregtelike verband is. Daar word aangevoer dat die leerstuk uitdruklik deur artikel 173 van die Grondwet van die Republiek van Suid-Afrika, 1996 getroef is. Daar word ook aangedui dat die beskerming van die Handves van Menseregt nie absoluut is nie en dat die beskerming van die leerstuk nie in artikels 12, 34 , of 35(3) van die Handves vasgele word nie. Die leerstuk bied nie beskerming waar die optrede van die Staat onregverdig is nie, maar waar daar wyer kommer oor die behoorlikheid van die strafverrigtinge is. Daar word daarop gewys dat die opskorting van die verrigtinge reed vir 'n geruime tyd nie meer die enigste remedie vir die misbruik van die proses is nie. In hierdie aantekening voer ek aan dat te veel tipes gedrag losweg as misbruik beskou word, en dat die hoer howe in hulle uitvoering van hulle inherente mag om sake te bestuur, die grense van die leerstuk oorskry het. Daar word ook aangevoer dat daar te maklik versoek word dat die verhoor nie moet plaasvind nie, of gestop moet word.
The legal implications of South Africa’s grey-listing for money laundering : analysis and recommendations
Ncube, Princess Thembelihle (Nelson Mandela Metropolitan University, Faculty of Law, 2025-04-08)
This article analyses the legal implications of South Africa’s grey-listing by the Financial Action Task Force (FATF) for money laundering in a concise manner. It examines the deficiencies in South Africa’s anti-money laundering and counter-terrorism financing (AML/CFT) regime, which led to its grey-listing, and the measures the country has taken to address them. The article evaluates the effectiveness of South Africa’s AML/CFT framework in combating money laundering, highlighting areas for improvement. It also considers the impact of South Africa’s grey-listing on the country’s financial system, including increased scrutiny from international regulators and potential reputational damage. The article recommends specific legal reforms and policy measures South Africa can adopt to strengthen its AML/CFT regime and enhance its compliance with international standards. These Recommendations cover regulatory oversight, law enforcement cooperation, risk assessment, customer due diligence, and sanctions enforcement. The article provides a practical and policy-oriented guide for policymakers and other South African stakeholders to better understand the legal and regulatory challenges of combating money laundering in a grey-listed jurisdiction and identify strategies for improving the country’s AML/CFT framework.
Interpreting conflicting statutory provisions – a closer look at merger provisions in the Companies Act and Income Tax Act
Meyer, Carolina (Nelson Mandela Metropolitan University, Faculty of Law, 2025-04-08)
It sometimes occurs that provisions of two separate national laws are in conflict with each other, or certain inconsistencies arise with the interpretation of the two provisions. When interpreting legislation where there is an inconsistency or conflict, these provisions must, in terms of the common law, be interpreted so as to be reconciled and to exist coherently. This is, however, not always possible. In this contribution, the author considers the rules of interpretation of statutes with reference to the merger and amalgamation provisions in the Companies Act 71 of 2008, and the Income Tax Act 58 of 1962. Although the aims of the two Acts differ, both may apply to the same transaction. Therefore, in order to ensure certainty for the merger parties, the two Acts should coincide in terms of their provisions governing the merger or amalgamation transaction. If a narrow interpretation is used to apply the provisions concurrently and the “mischief” is still not resolved (i.e., the provisions remain in conflict with one another), the question of the next step arises. In terms of the examples used, the Companies Act is the “dominant” Act (the prevailing Act), but what does that mean for the irreconcilable provisions in the Income Tax Act? The author attempts to address how best to approach the identified discrepancies where an outright conflict between the provisions has been identified.
Reflections on the concept of informal social security and communal lifestyle in South Africa
Tshoose, Clarence Itumeleng; Letseku, Reuben; Van Eck, B.P.S. (Stefan) (Pretoria University Law Press, 2025)
This article investigates how the notion of informal social security and communal lifestyle has played a significant role in sustaining the livelihood of indigenous people in South Africa. Reflecting on various indigenous informal social security safety methods, the article demonstrates how indigenous communities have used these safety nets and indigenous knowledge systems in their quest to survive against all odds. Informal social security refers to self-organised family, community or informal sector coping mechanisms. The article argues that these tailor-made traditional informal social security practices play an invaluable parallel role in the formal social security systems in South Africa. It is submitted that in many instances, these traditional safety nets serve an important complimentary role to existing formal social security measures for poor communities. The article further contends that this is crucial for poor indigenous peoples' well-being. Through informal social security initiatives, indigent households in South Africa have lessened the scourge of poverty, unemployment, inequalities, floods, and recently also the negative effects of HIV/AIDS and the COVID-19 pandemic. The article concludes by examining the challenges facing indigenous informal social security systems and makes some recommendations regarding these challenges.
Prescription and access to redress for consumers : a consideration of the prescription provisions under the consumer protection acts of South Africa and India
Scott-Ngoepe, Tshepiso (North-West University, 2025-05-30)
The limitation that is placed on the institution of legal proceedings is considered as being important for the purposes of ensuring legal certainty. Considering this, the Prescription Act 68 of 1969 has continued to co-exist alongside section 34 of the Constitution, which guarantees the right to access redress. The Consumer Protection Act 68 of 2008 (CPA) also introduces a specific statutory limitation that applies to transactions that fall within its scope. However, the provision is less nuanced and does not consider instances in which prescription might be interrupted. In many instances this has been to the detriment of consumers. In alignment with the CPA's dispute resolution process, consumers generally initiate their complaints with alternative dispute resolution agents, such as the accredited industry ombuds. Alternatively, consumers might refer their matters to the National Consumer Commission. Unfortunately, cases before the Tribunal have exposed the fact that consumers experience inordinate delays that lead to their complaints prescribing in terms of section 116(1) of the CPA. This article considers how this might be remedied, bearing in mind the prescription provision under the Consumer Protection Act, 2019 of India.
Reflections on the concept of informal social security and communal lifestyle in South Africa
Tshoose, Clarence Itumeleng; Letseku, Reuben; Van Eck, B.P.S. (Stefan) (Pretoria University Law Press, 2025)
This article investigates how the notion of informal social security and communal lifestyle has played a significant role in sustaining the livelihood of indigenous people in South Africa. Reflecting on various indigenous informal social security safety methods, the article demonstrates how indigenous communities have used these safety nets and indigenous knowledge systems in their quest to survive against all odds. Informal social security refers to self-organised family, community or informal sector coping mechanisms. The article argues that these tailor-made traditional informal social security practices play an invaluable parallel role in the formal social security systems in South Africa. It is submitted that in many instances, these traditional safety nets serve an important complimentary role to existing formal social security measures for poor communities. The article further contends that this is crucial for poor indigenous peoples’ well-being. Through informal social security initiatives, indigent households in South Africa have lessened the scourge of poverty, unemployment, inequalities, floods, and recently also the negative effects of HIV/AIDS and the COVID-19 pandemic. The article concludes by examining the challenges facing indigenous informal social security systems and makes some recommendations regarding these challenges.
Reflections on social justice and the enforcement of the National Minimum Wage Act and the Basic conditions of Employment Act
Van Eck, B.P.S. (Stefan); Maluleke, Foster (LexisNexis, 2025-11)
Die Wet op Arbeidsverhoudinge 44 van 1995, die Wet op Basiese Diensvoorwaardes 75 van 1997, en die Wet op Nasionale Minimum Loon 9 van 2018 is afgekondig om maatskaplike geregtigheid te bevorder. Maatskaplike geregtigheid behels dat alle individue gelyke ekonomiese geleenthede gebied word en dat elkeen op dieselfde maakskaplike regte aanspraak kan maak. Hierdie artikel voer aan dat arbeidsregbeskerming van beperkte waarde is indien geskilbeslegtingsprosesse omslagtig en duur is. In 'n logwaardige poging om geskilbeslegting vir laagbesoldige werknemers te vereenvoudig, is 'n vinnige en bekostigbare proses ingevolge artikel 73A van die Wet op Basiese Diensvoorwaardes ingestel. Hierdie artikel ondersteum die implementering van hierdie vereenvoudige prosedure en wys daarop dat, ten spyte van die positiewe aspekte daarvan, verskeie slaggate steeds die doelwitte van die bevordering van maatskaplike geregtigheid ondermyn. Die artikel sluit af met voorstelle wat moontlik sommige van die geidentifiseerde probleme kan aanspreek.
Advancing legal recognition and community-led reparations for indigenous rights in combating climate change and environmental degradation
Fehun Aren, Marie-Louise (Cambridge University Press, 2025-09)
Designing meaningful reparations for Indigenous communities requires grappling with the enduring effects of historical and contemporary injustices. Despite the existence of international legal frameworks such as the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP) and International Labour Organization Convention 169, Indigenous peoples around the world continue to experience systemic land dispossession, exclusion from decision making, and environmental harm tied to extractive and infrastructure projects. These harms are often compounded by the lack of formal legal recognition of Indigenous land rights and the failure to uphold principles like Free, Prior, and Informed Consent (FPIC). Addressing these realities demands reparative frameworks that go beyond symbolic recognition, offering structural responses grounded in accountability, restitution, and the restoration of Indigenous autonomy over land and resources.
Reflections on proposed law reforms for unfair dismissal
Van Eck, B.P.S. (Stefan); Newaj, Kamalesh; Mashele, Zwivhuya (Juta Law Journals, 2025-10)
The NEDLAC social partners have been engaged in a process of formulating amendments to a number of key pieces of labour legislation and their accompanying codes. In an attempt to foster job creation, policymakers have, among others, published proposals with the view to relaxing the seemingly onerous requirements in respect of unfair dismissal law. Although the negotiating parties have not reached consensus on key aspects of the amendments, significant suggestions have been placed on the table regarding amendments to the Code of Good Practice: Dismissal, as well as important provisions of the Labour Relations Act. The proposed amendments seek to relax unfair dismissal provisions in respect of small employers; they exclude unfair dismissal protection during probation; they recognise incompatibility as a separate ground of dismissal; and they place a cap on the maximum compensation which higher earning employees might be eligible to claim. This contribution analyses these proposed amendments, focusing on their projected effects on the regulatory landscape of unfair dismissal in South Africa.

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