The Companies Act does not set out what would be considered an independent director nor, for that matter, does it distinguish between executive and non-executive directors. Matthew Delaney looks at Independent Directors and SME's.

The share buy-back has long been an effective manner to consolidate ownership within a company. A share buy-back in many instances is also attractive from a tax perspective because it is considered a dividend and thus does not give rise to a capital gains event.

Share buy-backs are governed by Section 48 of the Companies Act 71 of 2008 (“the Act”), which allows the Board of Directors (the “Board”) of a company to determine that the company will acquire its own shares, subject to a solvency and liquidity test. Matthew Delaney Legal Consultant at Resolve Corporate Services takes a closer look.