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Financial assistance: the new approach
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 min...
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| Format: | Thesis |
| Language: | English English |
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Department of Commercial Law
2026
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| _version_ | 1867613162839212032 |
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| access_status_str | Open Access |
| author | Pinnock, Steven |
| author2 | Jooste, Richard |
| author_browse | Jooste, Richard Pinnock, Steven |
| author_facet | Jooste, Richard Pinnock, Steven |
| author_sort | Pinnock, Steven |
| collection | Thesis |
| description | 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. |
| format | Thesis |
| id | oai:open.uct.ac.za:11427/42848 |
| institution | University of Cape Town (South Africa) |
| language | English eng |
| last_indexed | 2026-06-10T12:31:45.395Z |
| license_str | Not specified — see source repository |
| provenance_str_mv | Harvested via OAI-PMH from UCTD — University of Cape Town Open Access Repository |
| publishDate | 2026 |
| publishDateRange | 2026 |
| publishDateSort | 2026 |
| publisher | Department of Commercial Law |
| publisherStr | Department of Commercial Law |
| record_format | dspace |
| source_str | UCTD — University of Cape Town Open Access Repository |
| spelling | oai:open.uct.ac.za:11427/42848 Financial assistance: the new approach Pinnock, Steven Jooste, Richard South Africa share acquisition financial assistance 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. 2026-02-16T11:42:49Z 2026-02-16T11:42:49Z 2009 2026-02-16T11:39:13Z Thesis / Dissertation Masters LLM http://hdl.handle.net/11427/42848 en eng application/pdf Department of Commercial Law Faculty of Law University of Cape Town |
| spellingShingle | South Africa share acquisition financial assistance Pinnock, Steven Financial assistance: the new approach |
| thesis_degree_str | Master's |
| title | Financial assistance: the new approach |
| title_full | Financial assistance: the new approach |
| title_fullStr | Financial assistance: the new approach |
| title_full_unstemmed | Financial assistance: the new approach |
| title_short | Financial assistance: the new approach |
| title_sort | financial assistance the new approach |
| topic | South Africa share acquisition financial assistance |
| url | http://hdl.handle.net/11427/42848 |
| work_keys_str_mv | AT pinnocksteven financialassistancethenewapproach |