Share incentive schemes in South Africa : an analysis of company law, accounting and income tax implications
- Authors: Mentz, Melanie
- Date: 2013
- Subjects: Executives -- Salaries, etc. -- South Africa , Bonuses (Employee fringe benefits) -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:8969 , http://hdl.handle.net/10948/d1021109
- Description: In the last decade South Africa saw the introduction of s 8C into the Income Tax Act, no.58 of 1962, the introduction of IFRS 2 into the International Financial Reporting Standards and the promulgation of the 2008 Companies Act. Each of these changes is relevant to and impact on the consequences flowing from executive share incentive schemes, from the perspective of both the employer company offering the scheme and the employee participating in the scheme. The aim of this study was to analyse, from the employer company’s perspective, the implications of each discipline in isolation, as well as the interrelationship of the three disciplines. The further aims of this study were to utilise the findings from the analyses to identify where legislative amendment is required to close loopholes or ensure equitable results, to identify where the interrelationship of the three disciplines result in unintended consequences, and to provide recommendations on how to avoid these adverse consequences. The most significant findings of this study are summarised below. Due to the legal precedent created by the Supreme Court of Appeal in the Labat case, the mode of settlement – cash or equity – will be the determining factor as regards the availability of an income tax deduction in the hands of the employer company. It is submitted that legislative amendment is required to rectify this inequitable result. Where payment by the employer pursuant to a share appreciation rights scheme occurs in a year of assessment subsequent to the year of assessment in which vesting occurred, changes in the value of the underlying equity instrument from the vesting date to the payment date could result in adverse income tax consequences to the employer and/or the fiscus. To address this, it is recommended that the Income Tax Act should be amended to expressly bring cash-settled executive share incentive schemes within the scope of s 7B and to align the provisions of s 7B and 8C in order to avoid anomalies existing between these two sections in so far as the income tax consequences in the hands of the participating employees are concerned.
- Full Text:
- Date Issued: 2013
- Authors: Mentz, Melanie
- Date: 2013
- Subjects: Executives -- Salaries, etc. -- South Africa , Bonuses (Employee fringe benefits) -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:8969 , http://hdl.handle.net/10948/d1021109
- Description: In the last decade South Africa saw the introduction of s 8C into the Income Tax Act, no.58 of 1962, the introduction of IFRS 2 into the International Financial Reporting Standards and the promulgation of the 2008 Companies Act. Each of these changes is relevant to and impact on the consequences flowing from executive share incentive schemes, from the perspective of both the employer company offering the scheme and the employee participating in the scheme. The aim of this study was to analyse, from the employer company’s perspective, the implications of each discipline in isolation, as well as the interrelationship of the three disciplines. The further aims of this study were to utilise the findings from the analyses to identify where legislative amendment is required to close loopholes or ensure equitable results, to identify where the interrelationship of the three disciplines result in unintended consequences, and to provide recommendations on how to avoid these adverse consequences. The most significant findings of this study are summarised below. Due to the legal precedent created by the Supreme Court of Appeal in the Labat case, the mode of settlement – cash or equity – will be the determining factor as regards the availability of an income tax deduction in the hands of the employer company. It is submitted that legislative amendment is required to rectify this inequitable result. Where payment by the employer pursuant to a share appreciation rights scheme occurs in a year of assessment subsequent to the year of assessment in which vesting occurred, changes in the value of the underlying equity instrument from the vesting date to the payment date could result in adverse income tax consequences to the employer and/or the fiscus. To address this, it is recommended that the Income Tax Act should be amended to expressly bring cash-settled executive share incentive schemes within the scope of s 7B and to align the provisions of s 7B and 8C in order to avoid anomalies existing between these two sections in so far as the income tax consequences in the hands of the participating employees are concerned.
- Full Text:
- Date Issued: 2013
Critical design within the practice of graphic design
- Authors: Kuhn, Simon
- Date: 2012
- Subjects: Graphic arts , Product design
- Language: English
- Type: Thesis , Masters , MTech
- Identifier: vital:8494 , http://hdl.handle.net/10948/d1007843 , Graphic arts , Product design
- Description: Critical Design is a specific type of design activity that has emerged from within the field of product design. Based on the supposition that design is an ideological activity, it can either be critical or affirmative of the status quo and categorised as Critical Design or Affirmative Design. The intention of this study is to create Critical Design within the practice of graphic design. Critical Design was defined by identifying its key characteristics and then visualised into a diagram that maps the pathways, processes and consequences which distinguish Critical Design from Affirmative Design. The characteristics were used to generate criteria of Critical Design, which were then used to analyse case studies. The findings from this analysis suggested that both case study projects could be defined as Critical Design and served as a way of testing the appropriateness of the criteria. The practical component of this study used the characteristics of Critical Design to create a range of graphic design artefacts and then analysed them in relation to the criteria of Critical Design. The findings from this analysis determined the practical component as Critical [Graphic] Design and suggested that graphic design can be an appropriate medium for critique of its own role within society.
- Full Text:
- Date Issued: 2012
- Authors: Kuhn, Simon
- Date: 2012
- Subjects: Graphic arts , Product design
- Language: English
- Type: Thesis , Masters , MTech
- Identifier: vital:8494 , http://hdl.handle.net/10948/d1007843 , Graphic arts , Product design
- Description: Critical Design is a specific type of design activity that has emerged from within the field of product design. Based on the supposition that design is an ideological activity, it can either be critical or affirmative of the status quo and categorised as Critical Design or Affirmative Design. The intention of this study is to create Critical Design within the practice of graphic design. Critical Design was defined by identifying its key characteristics and then visualised into a diagram that maps the pathways, processes and consequences which distinguish Critical Design from Affirmative Design. The characteristics were used to generate criteria of Critical Design, which were then used to analyse case studies. The findings from this analysis suggested that both case study projects could be defined as Critical Design and served as a way of testing the appropriateness of the criteria. The practical component of this study used the characteristics of Critical Design to create a range of graphic design artefacts and then analysed them in relation to the criteria of Critical Design. The findings from this analysis determined the practical component as Critical [Graphic] Design and suggested that graphic design can be an appropriate medium for critique of its own role within society.
- Full Text:
- Date Issued: 2012
Modeling economic behaviour in South Africa's informal urban retail trade sector: the case of Port Elizabeth
- Authors: Qabhobho, Thobekile
- Date: 2012
- Subjects: Retail trade -- South Africa -- Port Elizabeth , Business enterprises -- South Africa -- Port Elizabeth
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9008 , http://hdl.handle.net/10948/d1012855
- Description: Even though South Africa‟s historical inequalities are addressed, serious economic disparities are still evident. The informal economy is not flourishing as it should be, especially when compared to other fledgling democracies on the continent and this poses a policy question since most of the participants of this sector are from the previously disadvantaged section of the population. One policy dilemma that comes to the fore is about how to ensure that there is increased productivity in the sector so that the sector‟s contribution to the national economy can be enhanced. While the actual share of the economy contributed by the informal economy is difficult to ascertain there is evidence that this constitutes less than one fifth of South Africa‟s GDP. Within the informal economy trading appears to be the dominant economic activity. Despite the importance of the informal trade the sector has not attracted the needed attention in the literature either locally or internationally. The area that has received much attention by researchers has been the informal financial sector. Drawing on a standard revenue model for the informal trade sector this study examines the factors that explain differences in the performance of the retail trade businesses; given that these can be identified an effort should then be made to explore the policy measures that can improve the performance of these firms. The study is based on a sample of 300 informal retail traders in the Port Elizabeth environ. The regression analysis presented in this study suggests that residential area, capital, labour, inventory and age of a business are important determinants of an informal retail trade firm‟s revenue. Very few informal retailers indicated that they had businesses training. The survey results show that having a supplier close to the business assists in reducing transport costs, hence the increase in profit margins. Shelters and storages were found to be very useful in the operation of informal businesses.
- Full Text:
- Date Issued: 2012
- Authors: Qabhobho, Thobekile
- Date: 2012
- Subjects: Retail trade -- South Africa -- Port Elizabeth , Business enterprises -- South Africa -- Port Elizabeth
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9008 , http://hdl.handle.net/10948/d1012855
- Description: Even though South Africa‟s historical inequalities are addressed, serious economic disparities are still evident. The informal economy is not flourishing as it should be, especially when compared to other fledgling democracies on the continent and this poses a policy question since most of the participants of this sector are from the previously disadvantaged section of the population. One policy dilemma that comes to the fore is about how to ensure that there is increased productivity in the sector so that the sector‟s contribution to the national economy can be enhanced. While the actual share of the economy contributed by the informal economy is difficult to ascertain there is evidence that this constitutes less than one fifth of South Africa‟s GDP. Within the informal economy trading appears to be the dominant economic activity. Despite the importance of the informal trade the sector has not attracted the needed attention in the literature either locally or internationally. The area that has received much attention by researchers has been the informal financial sector. Drawing on a standard revenue model for the informal trade sector this study examines the factors that explain differences in the performance of the retail trade businesses; given that these can be identified an effort should then be made to explore the policy measures that can improve the performance of these firms. The study is based on a sample of 300 informal retail traders in the Port Elizabeth environ. The regression analysis presented in this study suggests that residential area, capital, labour, inventory and age of a business are important determinants of an informal retail trade firm‟s revenue. Very few informal retailers indicated that they had businesses training. The survey results show that having a supplier close to the business assists in reducing transport costs, hence the increase in profit margins. Shelters and storages were found to be very useful in the operation of informal businesses.
- Full Text:
- Date Issued: 2012
To investigate and evaluate the implementation of the supply chain management in service delivery with specific focus on procurement processes of goods and services in the head office of the Eastern Cape department of health
- Authors: Mnguni, Nombuyiselo
- Date: 2012
- Subjects: Business logistics -- South Africa -- Eastern Cape -- Management , Business logistics -- South Africa -- Eastern Cape , Management -- Procurement , Supply and demand
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:8572 , http://hdl.handle.net/10948/1599 , Business logistics -- South Africa -- Eastern Cape -- Management , Business logistics -- South Africa -- Eastern Cape , Management -- Procurement , Supply and demand
- Description: Supply Chain Management is a well recognized managerial tool and government initiative, primarily aimed at improving all the aspects of the procurement activities in government organizations or any type of the sector. It focuses on meeting the needs of the service providers as well as of the customers. In 1994, South African Government came up with new initiatives to manage its budget and finance resources to meet the needs of the people. One of the new initiatives that the new Government introduced was the Supply Chain Management (SCM). The Constitution of the Republic of South Africa, Act No.108 of 1996, as amended regulates procurement through Section 217. The statutes states that “217(1) when an Organ of State in the national, provincial or local sphere of government, or any institution identified in national legislation, contracts for goods or services, it must do so in accordance with a system which is fair, equitable, transparent, competitive and cost-effective The procurement reform processes were supported by the introduction of a number of legislative measures, including the adoption of the Public Financial Management Act (PFMA) and the Preferential Procurement Policy Framework Act (PPPFA). Public Finance Management Act (PFMA) is a financial act that was developed in 1999 to reform the public financial management of South Africa. The Act promotes the objective of good financial management in order to maximise delivery through the efficient and effective use of limited resources. Public Financial Management Act (PFMA) emphasizes on efficiency, transparency and economic utilization of public funds. The Treasury Regulations 16.5.3 states that, ‘when procuring goods and services, the procurement procedures must be in accordance with a system that is fair, equitable, transparent, competitive and cost-effective. Even though government departments have started implementing the Supply Chain Management strategies, there are still some challenges and deficiencies that hinder appropriate implementation. There are some deficiencies in tender award systems, ineffectiveness of SCM training materials, lack of communication between management and SCM or implementing staff as a result the implementing staff is not aware of the organization’s goals regarding supply chain management activities. Lack of monitoring, evaluation and reporting is also another challenge. Due to these challenges, the Head Office of the Eastern Cape Department of Health had incurred some expenses in trying to address these yet the Supply Chain Management has little impact in improving the service delivery. The key research objective of this study is to investigate and evaluate the implementation of Supply Chain Management in service delivery with specific focus in procurement processes of goods and services in Head Office of Eastern Cape Department of Health. The study intends to establish and highlight the challenges that the Head Office of the Eastern Cape Department of Health is presently faced with in regard to implementation of the Supply Chain Management and the impact it has in service delivery. Data gathering techniques which include interviews and questionnaires had been used. The objectives, methodology and results of the study are presented. The conclusions and recommendations had been made with the basis that they will assist the department in improving the implementation of the Supply Chain Management which will have a positive impact in the service delivery. Further steps needs to be taken by the Provincial Treasuries in assisting department to improve in the implementation of the Supply Chain Management. Further research conduct is recommended for all the institutions of the department of Health as this study was focusing on Head Office only.
- Full Text:
- Date Issued: 2012
- Authors: Mnguni, Nombuyiselo
- Date: 2012
- Subjects: Business logistics -- South Africa -- Eastern Cape -- Management , Business logistics -- South Africa -- Eastern Cape , Management -- Procurement , Supply and demand
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:8572 , http://hdl.handle.net/10948/1599 , Business logistics -- South Africa -- Eastern Cape -- Management , Business logistics -- South Africa -- Eastern Cape , Management -- Procurement , Supply and demand
- Description: Supply Chain Management is a well recognized managerial tool and government initiative, primarily aimed at improving all the aspects of the procurement activities in government organizations or any type of the sector. It focuses on meeting the needs of the service providers as well as of the customers. In 1994, South African Government came up with new initiatives to manage its budget and finance resources to meet the needs of the people. One of the new initiatives that the new Government introduced was the Supply Chain Management (SCM). The Constitution of the Republic of South Africa, Act No.108 of 1996, as amended regulates procurement through Section 217. The statutes states that “217(1) when an Organ of State in the national, provincial or local sphere of government, or any institution identified in national legislation, contracts for goods or services, it must do so in accordance with a system which is fair, equitable, transparent, competitive and cost-effective The procurement reform processes were supported by the introduction of a number of legislative measures, including the adoption of the Public Financial Management Act (PFMA) and the Preferential Procurement Policy Framework Act (PPPFA). Public Finance Management Act (PFMA) is a financial act that was developed in 1999 to reform the public financial management of South Africa. The Act promotes the objective of good financial management in order to maximise delivery through the efficient and effective use of limited resources. Public Financial Management Act (PFMA) emphasizes on efficiency, transparency and economic utilization of public funds. The Treasury Regulations 16.5.3 states that, ‘when procuring goods and services, the procurement procedures must be in accordance with a system that is fair, equitable, transparent, competitive and cost-effective. Even though government departments have started implementing the Supply Chain Management strategies, there are still some challenges and deficiencies that hinder appropriate implementation. There are some deficiencies in tender award systems, ineffectiveness of SCM training materials, lack of communication between management and SCM or implementing staff as a result the implementing staff is not aware of the organization’s goals regarding supply chain management activities. Lack of monitoring, evaluation and reporting is also another challenge. Due to these challenges, the Head Office of the Eastern Cape Department of Health had incurred some expenses in trying to address these yet the Supply Chain Management has little impact in improving the service delivery. The key research objective of this study is to investigate and evaluate the implementation of Supply Chain Management in service delivery with specific focus in procurement processes of goods and services in Head Office of Eastern Cape Department of Health. The study intends to establish and highlight the challenges that the Head Office of the Eastern Cape Department of Health is presently faced with in regard to implementation of the Supply Chain Management and the impact it has in service delivery. Data gathering techniques which include interviews and questionnaires had been used. The objectives, methodology and results of the study are presented. The conclusions and recommendations had been made with the basis that they will assist the department in improving the implementation of the Supply Chain Management which will have a positive impact in the service delivery. Further steps needs to be taken by the Provincial Treasuries in assisting department to improve in the implementation of the Supply Chain Management. Further research conduct is recommended for all the institutions of the department of Health as this study was focusing on Head Office only.
- Full Text:
- Date Issued: 2012
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