Page 5 - KZN Business Sense

DO YOU KNOW WITH WHOM YOU ARE

DOING BUSINESS?

Benjamin Meadows, You may engage him to provide to Mr X, whom you have never may be tempted to assume that whose conduct you care about
Partner, Cox Yeats a service, only to receive a met and with whom you have you can rely on the financial less, in connection with the
contract in the name of his no relationship whatsoever. position of the group and turn conduct of the party you care
company, ABC (Pty) Ltd. That Absent specific wording in your to other group companies if about more.
ompanies doesn’t seem like a problem, contract, the fact that you do issues arise with ABC (Pty)
are an and you sign the contract on the not know Mr X is irrelevant. Ltd. Once again, by default, All of which is to say, it is very
Cexcellent back of your relationship with You have a contract with ABC that is not the case. It would be easy to nod along when told
way to pool capital Mr A. (Pty) Ltd, and Mr X can make necessary for a group company that companies have a separate
and to embark the company hold you to that to guarantee the performance personality. However, in the
on business Unfortunately, there may be a contract. of ABC (Pty) Ltd or otherwise cut and thrust of day-to-day
ventures problem. Legally speaking, your be bound to an obligation which commerce, it is not always easy
whilst business is in no meaningful You might say that your you can enforce. Assumptions or natural to hold in mind
minimising way being conducted with Mr contract prevents a cession can compound, and it would be the distinction between the
personal A. You are now a customer of of rights. That again is of no dangerous to assume that ABC company you are dealing with
exposure to ABC (Pty) Ltd. The default assistance, because a change in (Pty) Ltd can bind that group and the individuals you know
business risks. Without them, position, broadly speaking, the shareholding of ABC (Pty) and trust. Particularly when
many a budding entrepreneur is that you cannot hold Mr A Ltd does not result in any cession company to your contract. contracts are of long duration,
Unless you have a piece of paper
would not be prepared to take directly responsible for the of rights – the rights were it is crucial to make sure that
the leap of faith necessary to contract, regardless of whether originally held by ABC (Pty) Ltd signed on behalf of the company those contracts bind all of
change the world. However, he is a shareholder, director and continue to be held by ABC you intend to hold accountable, the right people in all of the
the use of companies can or employee of ABC (Pty) (Pty) Ltd after the sale. What is you may find yourself unable to right ways and protect your
also create confusion about Ltd. Furthermore, unless the required is what is commonly proceed against that company position when people you
who it is that can be held to contract contains the necessary called a “change in control” in the future. know are replaced with people
account, particularly when language, you cannot require clause; namely, one which allows A similar issue arises when you don’t. 
companies are incorporated that Mr A provides the service you to terminate the contract dealing with restraints of trade.
to conduct service businesses on behalf of ABC (Pty) Ltd. (or take other action) if Mr A If you have a restraint signed by T: +27 (0)31 536 8500
(or businesses with a service You might also, to your horror, sells his shares in ABC (Pty) Ltd Mr A, that does not mean that E: bmeadows@coxyeats.co.za
component). learn that Mr A has decided to without your consent. you have a restraint signed by W: www.coxyeats.co.za
Relationships are important in retire the day after ABC (Pty) Assumptions can once again ABC (Pty) Ltd, and vice versa.
business. You may have a very Ltd signs the contract. Mr A result in trouble if ABC (Pty) You may find yourself in the
good relationship with Mr A. resigns from all his positions and Ltd is a brand-new subsidiary of undesirable position of having
You may trust him implicitly. sells his shares in the company a large multinational group. You to proceed against the party

SEIFSA HONOURS INDUSTRY STALWART

teel and Engineering has been an influential mentor to be clear, Henk was never an
Industries Federation of and inspiration to many in enemy. He was always a loyal
SSouthern Africa (SEIFSA) the industry. His contribution friend and ally who cared deeply
CEO Lucio Trentini has to the work of the KwaZulu- about SEIFSA and the future of
paid tribute to Henk Duys, Natal Engineering Industries our industry.”
executive chairman of the Association (KZNEIA) and to Duys was also praised for
Duys Engineering Group, as SEIFSA has been described as stepping in during a critical
he presented him with the significant and lasting. period for SEIFSA. “I will always
prestigious Lifetime Achievement Trentini noted, “Henk played be grateful to Henk,” Trentini
Award, acknowledging decades a vital role in the work of the said, “for coming to the rescue
of service, leadership and KwaZulu-Natal Engineering of SEIFSA in its darkest hour
commitment to the metals and Industries Association and made when my predecessor, David
engineering sector. an indelible contribution to Carson, unexpectedly took early
Duys, whose company services SEIFSA. He was a member and retirement. Without being asked,
customers across the mining, leader of the KZNEIA for many Henk stepped in and was the
smelting, automotive and industrial years, served on the SEIFSA caretaker of the organisation
sectors, has successfully grown council for 12 years, sat on the until a new CEO was appointed. The SEIFSA Lifetime Achievement Award 2025 was awarded to Henk Duys,
executive chairman of the Duys Engineering Group
the family business over a period SEIFSA Executive – our board He gave up countless hours
of more than 65 years. Under his at the time – and was elected and made numerous trips Describing his style during for more than 35 years – from
leadership, the Duys Engineering SEIFSA president on no less than between Johannesburg and negotiations, Trentini said,
Group has become a leading steel three occasions.” KZN, at his own expense, to “Employer caucuses were never when I joined SEIFSA as a young
fabrication, manufacturing and During his tenure, Duys was stabilise the organisation.” the same when Henk wasn’t there, industrial relations officer to the
design company with a strong recognised for his forthright With a background in industrial person I am today.”
footprint across the African leadership style. “Henk was relations and labour negotiations, glued to his laptop and Excel Closing his tribute, Trentini
spreadsheets, often two or three
continent and beyond. never shy or short of a word or Trentini highlighted Duys’ active steps ahead of everyone in the said, “SEIFSA is about people,
two when it came to confronting involvement in industry wage and Henk embodies everything
Trentini commented, “Henk room. He was never short of a
Duys embodies everything that the most difficult issues,” discussions. “Henk was a key word or a witty remark, and he the organisation stands for –
Trentini explained. “He could
member of the SEIFSA Main
business leaders – or as we at constantly encouraged the team.” resilience, dedication, a belief in
SEIFSA have come to call them be a tough man, a thorn in our Agreement Wage Negotiating Trentini reflected on his personal exceeding expectations, and a
side at times, but his sharp
Team and often chaired the
over the years, ‘Captains of mind and his ability to speak employer caucus. We secured some reminder that with a clear vision,
Industry’ – should represent: on behalf of small businesses in very good deals over the years journey alongside Duys, stating, anything is possible. Henk is
“I learned a lot from Henk. He
an unwavering commitment the sector made him a valuable and a few not so good ones,” he was a tough taskmaster, unafraid a true Captain of Industry, a
to success, a dedication to ally.” Reflecting on a well-known acknowledged. “But through it all, to say what needed to be said. visionary leader who answered
excellence, and the ability to phrase, Trentini quipped, “As Henk was a constant – always at He was respected by everyone the call to lead and never sought
exceed expectations.” the old Italian saying goes – best our side, contributing his expertise who worked with him, whether anything in return.” 
In addition to overseeing an to keep your friends close and and taking time away from his from business or the unions. I
expansive business empire, Duys your enemies even closer. But business for the greater good.” am grateful to have known him www.duysgroup.com

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