How to Stop an Ex-Director from Competing With You

"...the default position is that an executive director or a senior employee may not carry on business activities which fall within the scope of his company's business during the time when he serves as director or works as employee. The default position however changes on resignation." (Extract from judgment below)

What happens if relations between you and your fellow company directors sour to the extent that a director leaves? Can he or she immediately open up a new business in direct competition to you?

A recent High Court decision both addresses that knotty question, and highlights a quick and easy solution.

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Beware the "Common Law Marriage" Myth

"In our law cohabitation does not have special legal consequences. Generally the proprietary consequences and rights flowing from a marriage are not available to unmarried couples, regardless of the length of their cohabitation" (extract from judgment below)

 

If you live as a couple, avoid the trap of believing the myth of the "common law marriage". It's a very persistent myth, possibly because some other countries do indeed give formal recognition to certain forms of life partnership.

But not in South Africa - there is no such thing in our law as a "common law marriage". No matter how long you have lived together, if you break up or when one of you dies, neither of you automatically has any of the rights and protections afforded to a couple in a marriage or civil union.

Apart from the personal consequences the financial downsides can be huge, and our courts are all too often faced with sad and bitter disputes which end with one of the partners destitute and homeless after decades of cohabitation.

A recent High Court case highlights the financial dangers...

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Employees: Your New Rights to Paternity and Parental Leave

People who say they sleep like a baby usually don't have one" (Psychologist Leo J Burke)

 


It has taken over a year of confusion and delay around when new changes will be implemented, but finally your extended rights to parental leave and to an Unemployment Insurance Fund (UIF) claim have fully commenced.

Here's an update/refresher -

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Can You Sue a Bad Investment Advisor? It depends...

"I always advise people never to give advice" (P. G. Wodehouse)

If you want to send shivers down the spine of any investor, mention "Steinhoff", or "Sharemax", or any one of the many other spectacular corporate collapses that have plagued both local and overseas investors in recent times.

Quite apart from the high-profile failures it's been a hard few years for investors generally, and if your nest egg has taken a painful tumble recently you may well wonder whether you can sue your financial advisor for giving you bad advice.

The short answer, as several recent cases have highlighted, is "It depends...".

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