Abstract
With the onset of the new statutory merger in South Africa, the impact of the practical implementation of the procedure has revealed numerous holes and uncertainties readers concerning the reorganisation of assets and liabilities. One of the major stumbling blocks of the procedure stems from the lack of guidelines provided in the current legislation.
By way of normative methodology this paper will consider in detail and highlight discrepancies in the wording used to describe the process of the transfer of assets and liabilities. An attempt has been to provide an analysis through the minefield of the procedural requirements. The guidelines can be used to prevent delays in the implementation of the statutory merger and navigate the interaction between the Companies Act and other legislation.
To this end, it appears that the legislature will need to review the procedure as well as provide appropriate guidelines when dealing with inconsistencies in other legislation. The wording of the Companies Act should be amended in order to prevent ambiguous interpretations which may lead to delays upon implementation.
LL.M. (Commercial Law)