Dividend rules and accounting issues relating to the payment of dividends in South Africa
- Authors: Voogt, Thea Louisa
- Date: 2012-08-24
- Subjects: Dividends -- South Africa
- Type: Thesis
- Identifier: uj:3143 , http://hdl.handle.net/10210/6561
- Description: M.Comm. , This study of dividend rules and accounting issues relating to the payment of dividends, has now reached its conclusion. All that remains is to put the study in the South African context and to reflect on a number of new topics that may be researched on the issue of dividends. In the 1950's and the 1960's, the South African economy grew at a rate of 4,5% per year, which was in line with many other western economies. During the 1 970's, the South African Government's role in the economy increased dramatically under a burgeoning bureaucracy. Slow economic growth over this decade and the 1980's, caused South Africa to fall further behind its major trading partners. High inflation, poor productivity, a high population growth rate and a shortage of skilled manpower was the resultant effect (Manning, 1988:14). The collapse of apartheid and the dawning of the New South Africa during the 1990's have brought with it its own opportunities and challenges. The South African economy's most pressing reality now is its own sheer economic survival. South Africa is currently battling with a staggering unemployment rate of 40%, suffering a budget deficit amounting to 5% of its R118 billion gross domestic product and must compete on world markets with nations like Brazil, Chile, South Korea and Indonesia (Ogden, 1996:49). The issues that need to be addressed'are undoubtedly immense. The question then has to be asked if and how a study on dividends can make a difference. The fact, however, remains that the proverbial drops eventually fill an empty bucket. There are certainly no short-cuts if the country is to make a successful transformation to full economic maturity (Ogden, 1996:49). Share investments and dividends received by individual investors could go a long way in introducing new participants into the equity market that is one of the pillars of the South African economy. Equity ownership in South Africa need to be democratized and filtered down to the individuals of all population groups and income levels in order to reduce ethnic conflict, reduce economic disparity of population groups and contribute to development (Nyhonyha & Braithwaite, 1 996:8). The majority of the population would, however, need assistance in this regard. The empowerment of these individuals through information would be the starting point as discussed in paragraph 9.9.3.1. Apart form the information and training that should be provided, these individuals would also need financial assistance in some form in order to invest in shares and receive dividends. Employee share incentive schemes could be a valuable tool that could provide the majority of the economically active South African population, who currently do not have access to equity capital, with the means of ownership of a portion of the economy (Nyhonyha & Braithwaite, 1996:8). Employee share incentive ownership programs are urgently needed in South Africa. The excessive concentration of economic power in the hands of a small minority must be addressed (Nyhonyha & Braithwaite, 1996:8). Individuals who have previously not taken part in the formal economy need to be empowered in this way. Employee share incentive schemes normally take on the form of a scheme in terms of section 38 (2) (b) and section 38 (2) (c) of the Act (South Africa, 1 973). Section 38 (2) (b) allows for a scheme through which a trust receives assistance from a company in the form of money, for the subscription for or purchase of shares. The trustees may then purchase shares in the company or its holding company. The trustees will hold the shares for the benefit of the employees of the company, including any salaried director holding a salaried employ or office in the company (South Africa, 1973). Section 38 (2) (c) allows for a company to provide financial assistance to persons, other than directors, bona fide in the employment of the company with a view to enabling those persons to purchase or subscribe for shares of the company or its holding company to be held by themselves as owners (South Africa, 1973). There are, however, other ways through which individuals may invest on the JSE. This study of dividends, focused on a number of problems that may be encountered by small individual investors and in particular black investors who intend to invest on the JSE. Paragraph 7.4.6.1. highlighted a number of problems that these investors face and noted that their discretionary savings may be limited. In South Africa, more than 50% of the black population earns less than R300 a month (Nyhonyha & Braithwaite, 1996:8). The savings of potential investors as individuals, however, need not be mobilized. Programs for future investment on the JSE, can target stokvels. Research has shown that about 8 million people in urban townships belong to stokvels, exchanging more than R900 million a year (Anon., 1996:4). The market capitalization of black controlled companies on the JSE is currently R7,78 billion (Kobokoane, 1996:3).
- Full Text:
- Authors: Voogt, Thea Louisa
- Date: 2012-08-24
- Subjects: Dividends -- South Africa
- Type: Thesis
- Identifier: uj:3143 , http://hdl.handle.net/10210/6561
- Description: M.Comm. , This study of dividend rules and accounting issues relating to the payment of dividends, has now reached its conclusion. All that remains is to put the study in the South African context and to reflect on a number of new topics that may be researched on the issue of dividends. In the 1950's and the 1960's, the South African economy grew at a rate of 4,5% per year, which was in line with many other western economies. During the 1 970's, the South African Government's role in the economy increased dramatically under a burgeoning bureaucracy. Slow economic growth over this decade and the 1980's, caused South Africa to fall further behind its major trading partners. High inflation, poor productivity, a high population growth rate and a shortage of skilled manpower was the resultant effect (Manning, 1988:14). The collapse of apartheid and the dawning of the New South Africa during the 1990's have brought with it its own opportunities and challenges. The South African economy's most pressing reality now is its own sheer economic survival. South Africa is currently battling with a staggering unemployment rate of 40%, suffering a budget deficit amounting to 5% of its R118 billion gross domestic product and must compete on world markets with nations like Brazil, Chile, South Korea and Indonesia (Ogden, 1996:49). The issues that need to be addressed'are undoubtedly immense. The question then has to be asked if and how a study on dividends can make a difference. The fact, however, remains that the proverbial drops eventually fill an empty bucket. There are certainly no short-cuts if the country is to make a successful transformation to full economic maturity (Ogden, 1996:49). Share investments and dividends received by individual investors could go a long way in introducing new participants into the equity market that is one of the pillars of the South African economy. Equity ownership in South Africa need to be democratized and filtered down to the individuals of all population groups and income levels in order to reduce ethnic conflict, reduce economic disparity of population groups and contribute to development (Nyhonyha & Braithwaite, 1 996:8). The majority of the population would, however, need assistance in this regard. The empowerment of these individuals through information would be the starting point as discussed in paragraph 9.9.3.1. Apart form the information and training that should be provided, these individuals would also need financial assistance in some form in order to invest in shares and receive dividends. Employee share incentive schemes could be a valuable tool that could provide the majority of the economically active South African population, who currently do not have access to equity capital, with the means of ownership of a portion of the economy (Nyhonyha & Braithwaite, 1996:8). Employee share incentive ownership programs are urgently needed in South Africa. The excessive concentration of economic power in the hands of a small minority must be addressed (Nyhonyha & Braithwaite, 1996:8). Individuals who have previously not taken part in the formal economy need to be empowered in this way. Employee share incentive schemes normally take on the form of a scheme in terms of section 38 (2) (b) and section 38 (2) (c) of the Act (South Africa, 1 973). Section 38 (2) (b) allows for a scheme through which a trust receives assistance from a company in the form of money, for the subscription for or purchase of shares. The trustees may then purchase shares in the company or its holding company. The trustees will hold the shares for the benefit of the employees of the company, including any salaried director holding a salaried employ or office in the company (South Africa, 1973). Section 38 (2) (c) allows for a company to provide financial assistance to persons, other than directors, bona fide in the employment of the company with a view to enabling those persons to purchase or subscribe for shares of the company or its holding company to be held by themselves as owners (South Africa, 1973). There are, however, other ways through which individuals may invest on the JSE. This study of dividends, focused on a number of problems that may be encountered by small individual investors and in particular black investors who intend to invest on the JSE. Paragraph 7.4.6.1. highlighted a number of problems that these investors face and noted that their discretionary savings may be limited. In South Africa, more than 50% of the black population earns less than R300 a month (Nyhonyha & Braithwaite, 1996:8). The savings of potential investors as individuals, however, need not be mobilized. Programs for future investment on the JSE, can target stokvels. Research has shown that about 8 million people in urban townships belong to stokvels, exchanging more than R900 million a year (Anon., 1996:4). The market capitalization of black controlled companies on the JSE is currently R7,78 billion (Kobokoane, 1996:3).
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Purchasing governance and control for the Rand Afrikaans University.
- Authors: Voogt, Thea Louisa
- Date: 2008-05-06T10:12:21Z
- Subjects: South Africa , purchasing , Higher Education , Randse Afrikaanse Universiteit , Rand Afrikaans University
- Type: Thesis
- Identifier: uj:6870 , http://hdl.handle.net/10210/330
- Description: Hierdie proefskrif is in twee dele verdeel. Die doel van hierdie proefskrif is die bestudering van aankope beheer en die daarstelling van beheer oor die aankopefunksie van die Randse Afrikaanse Universiteit. Die Randse Afrikaanse Universiteit bevind homself in ‘n maalkolk van verandering waarbinne die Regering ‘n belangrike rol speel in rigtinggewing en die beheer van hoëronderwysinstellings. Alhoewel die Regering nog nie betrokke geraak het by die mikro bestuur van hoëronderwysinstellings nie, het hierdie studie bewys gelewer dat daar wel gronde is vir groter inmenging in die finansiële bestuur van universiteite en technikons. Van die metodes wat die Regering kan gebruik om beter korporatiewe beheer e n finansiële bestuur te bewerkstellig is onder andere vinnige intervensie by die vind van wanadministrasie, ‘n duidelike definisie van die vertroue -verantwoordelikheidsposisie tussen hoëronderwysinstellings en die Regering, die toepassing van publieke -sektor finansiële wetgewing, sowel as korporatiewe beheerbeginsels wat spesifiek vir die publieke sektor geskryf is. Al hierdie stappe het ten doel om meer effektiewe finansiële beheer in hoëronderwysinstellings te vestig. Hierdie studie het bewys dat nie alle universiteite en technikons in die besonder goeie finansiële posisie is waarin die Randse Afrikaanse Universiteit hom bevind nie. Ten einde net beter finansiële beheermaatreëls te vestig by die Randse Afrikaanse Universiteit het hierdie proefskrif verder gegaan om in detail beheer daar te stel oor aankope. Die resultate van hierdie proefskrif sluit in die skryf van ‘n eenvormige aankopebeleid, prosedurehandleiding en standaard dokumente wat in die tender - en aankopeproses gebruik gaan word. Purchasing governance and control for the Rand Afrikaans University Die proefskrif sluit ook spesifieke reëls in ten opsigte van die toepassing van voorkeurverkrygingsbeginsels. Hierdie voorkeurbehandeling word toegespits op voorheen benadeeldes sowel as klein, medium, mikro en baie klein ondernemings. Die voorkeurbehandeling wat voorgestel word is in baie opsigte meer progressief as die reëls wat deur die Regering toegepas word en is ‘n refleksie van die wyer transformasie wat binne die Randse Afrikaanse Universiteit plaasgevind het. Voorkeurbehandeling word egter net toegespits op tansaksies wat na die tenderkomitee verwys word. Opsigself is hierdie voorkeurbehandelingsmeganismes nie genoegsaam om blywende aankopehervorming aan die Randse Afrikaanse Universiteit te weeg te bring nie. Die proefskrif maak dit duidelik dat daar normalisering moet kom in die besigheidsverhouding tussen die universiteit en verskaffers. Die metode wat voorgestel word om hierdie doelwit te bereik, is die daarstelling van ‘n omvattende goedgekeurde verskafferslys wat die demografie van die Suid-Afrikaans e samelewing weerspieël. Aangesien die beleid en prosedures wat in hierdie proefskrif voorgestel word tot ‘n groot mate afhanklik is van die mense wat die proses dryf, sluit deel A van die studie af met ‘n etiese kode vir aankopepersoneel. Deel B van die proefskrif sit die beleid, prosedures, reglemente en standaard dokumente uiteen wat ontwikkel is en wat inderdaad al ‘n geruime tyd in werking is by die Randse Afrikaanse Universiteit. , Dr. G. Els
- Full Text:
- Authors: Voogt, Thea Louisa
- Date: 2008-05-06T10:12:21Z
- Subjects: South Africa , purchasing , Higher Education , Randse Afrikaanse Universiteit , Rand Afrikaans University
- Type: Thesis
- Identifier: uj:6870 , http://hdl.handle.net/10210/330
- Description: Hierdie proefskrif is in twee dele verdeel. Die doel van hierdie proefskrif is die bestudering van aankope beheer en die daarstelling van beheer oor die aankopefunksie van die Randse Afrikaanse Universiteit. Die Randse Afrikaanse Universiteit bevind homself in ‘n maalkolk van verandering waarbinne die Regering ‘n belangrike rol speel in rigtinggewing en die beheer van hoëronderwysinstellings. Alhoewel die Regering nog nie betrokke geraak het by die mikro bestuur van hoëronderwysinstellings nie, het hierdie studie bewys gelewer dat daar wel gronde is vir groter inmenging in die finansiële bestuur van universiteite en technikons. Van die metodes wat die Regering kan gebruik om beter korporatiewe beheer e n finansiële bestuur te bewerkstellig is onder andere vinnige intervensie by die vind van wanadministrasie, ‘n duidelike definisie van die vertroue -verantwoordelikheidsposisie tussen hoëronderwysinstellings en die Regering, die toepassing van publieke -sektor finansiële wetgewing, sowel as korporatiewe beheerbeginsels wat spesifiek vir die publieke sektor geskryf is. Al hierdie stappe het ten doel om meer effektiewe finansiële beheer in hoëronderwysinstellings te vestig. Hierdie studie het bewys dat nie alle universiteite en technikons in die besonder goeie finansiële posisie is waarin die Randse Afrikaanse Universiteit hom bevind nie. Ten einde net beter finansiële beheermaatreëls te vestig by die Randse Afrikaanse Universiteit het hierdie proefskrif verder gegaan om in detail beheer daar te stel oor aankope. Die resultate van hierdie proefskrif sluit in die skryf van ‘n eenvormige aankopebeleid, prosedurehandleiding en standaard dokumente wat in die tender - en aankopeproses gebruik gaan word. Purchasing governance and control for the Rand Afrikaans University Die proefskrif sluit ook spesifieke reëls in ten opsigte van die toepassing van voorkeurverkrygingsbeginsels. Hierdie voorkeurbehandeling word toegespits op voorheen benadeeldes sowel as klein, medium, mikro en baie klein ondernemings. Die voorkeurbehandeling wat voorgestel word is in baie opsigte meer progressief as die reëls wat deur die Regering toegepas word en is ‘n refleksie van die wyer transformasie wat binne die Randse Afrikaanse Universiteit plaasgevind het. Voorkeurbehandeling word egter net toegespits op tansaksies wat na die tenderkomitee verwys word. Opsigself is hierdie voorkeurbehandelingsmeganismes nie genoegsaam om blywende aankopehervorming aan die Randse Afrikaanse Universiteit te weeg te bring nie. Die proefskrif maak dit duidelik dat daar normalisering moet kom in die besigheidsverhouding tussen die universiteit en verskaffers. Die metode wat voorgestel word om hierdie doelwit te bereik, is die daarstelling van ‘n omvattende goedgekeurde verskafferslys wat die demografie van die Suid-Afrikaans e samelewing weerspieël. Aangesien die beleid en prosedures wat in hierdie proefskrif voorgestel word tot ‘n groot mate afhanklik is van die mense wat die proses dryf, sluit deel A van die studie af met ‘n etiese kode vir aankopepersoneel. Deel B van die proefskrif sit die beleid, prosedures, reglemente en standaard dokumente uiteen wat ontwikkel is en wat inderdaad al ‘n geruime tyd in werking is by die Randse Afrikaanse Universiteit. , Dr. G. Els
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