Financial assistance: the new approach

dc.contributor.advisorJooste, Richard
dc.contributor.authorPinnock, Steven
dc.date.accessioned2026-02-16T11:42:49Z
dc.date.available2026-02-16T11:42:49Z
dc.date.issued2009
dc.date.updated2026-02-16T11:39:13Z
dc.description.abstractSeveral jurisdictions, including South Africa, regulate the granting by a company of financial assistance for the acquisition of its own shares. Some permit financial assistance unconditionally, others regulate financial assistance according to strict conditions and others prohibit it subject to minor exceptions. After statutorily being introduced into company legislation in the early part of the 20th Century, there are still questions as to why this law is still so prominent, and whether such regulation or prohibition is a necessary component of company law in the modern commercial environment, or more specifically the South African commercial environment where the prohibition has been an impediment to Black Economic Empowerment (BEE) deals. The prohibition against financial assistance has been criticised by numerous academics and practitioners, and many jurisdictions have over time amended their laws dealing with financial assistance to make it less burdensome and restrictive. 1 South Africa finally relaxed its financial assistance prohibition contained in section 38 of the Companies Act- in 2007 when the Corporate Laws Amendment Act3 came into operation with the introduction of the US modelled solvency and liquidity test.
dc.identifier.apacitationPinnock, S. (2009). <i>Financial assistance: the new approach</i>. (). University of Cape Town ,Faculty of Law ,Department of Commercial Law. Retrieved from http://hdl.handle.net/11427/42848en_ZA
dc.identifier.chicagocitationPinnock, Steven. <i>"Financial assistance: the new approach."</i> ., University of Cape Town ,Faculty of Law ,Department of Commercial Law, 2009. http://hdl.handle.net/11427/42848en_ZA
dc.identifier.citationPinnock, S. 2009. Financial assistance: the new approach. . University of Cape Town ,Faculty of Law ,Department of Commercial Law. http://hdl.handle.net/11427/42848en_ZA
dc.identifier.ris TY - Thesis / Dissertation AU - Pinnock, Steven AB - Several jurisdictions, including South Africa, regulate the granting by a company of financial assistance for the acquisition of its own shares. Some permit financial assistance unconditionally, others regulate financial assistance according to strict conditions and others prohibit it subject to minor exceptions. After statutorily being introduced into company legislation in the early part of the 20th Century, there are still questions as to why this law is still so prominent, and whether such regulation or prohibition is a necessary component of company law in the modern commercial environment, or more specifically the South African commercial environment where the prohibition has been an impediment to Black Economic Empowerment (BEE) deals. The prohibition against financial assistance has been criticised by numerous academics and practitioners, and many jurisdictions have over time amended their laws dealing with financial assistance to make it less burdensome and restrictive. 1 South Africa finally relaxed its financial assistance prohibition contained in section 38 of the Companies Act- in 2007 when the Corporate Laws Amendment Act3 came into operation with the introduction of the US modelled solvency and liquidity test. DA - 2009 DB - OpenUCT DP - University of Cape Town KW - South Africa KW - financial assistance LK - https://open.uct.ac.za PB - University of Cape Town PY - 2009 T1 - Financial assistance: the new approach TI - Financial assistance: the new approach UR - http://hdl.handle.net/11427/42848 ER - en_ZA
dc.identifier.urihttp://hdl.handle.net/11427/42848
dc.identifier.vancouvercitationPinnock S. Financial assistance: the new approach. []. University of Cape Town ,Faculty of Law ,Department of Commercial Law, 2009 [cited yyyy month dd]. Available from: http://hdl.handle.net/11427/42848en_ZA
dc.language.isoen
dc.language.rfc3066eng
dc.publisher.departmentDepartment of Commercial Law
dc.publisher.facultyFaculty of Law
dc.publisher.institutionUniversity of Cape Town
dc.subjectSouth Africa
dc.subjectshare acquisition
dc.subjectfinancial assistance
dc.titleFinancial assistance: the new approach
dc.typeThesis / Dissertation
dc.type.qualificationlevelMasters
dc.type.qualificationlevelLLM
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