Buy-and-sell agreements. Protecting your business interests.

Francois le Clus • July 1, 2024

Buy-and-sell agreements. Protecting your business interests. 


If you’re running a business with partners, having a buy-and-sell agreement in place is crucial.


But why, you may ask? The answer is pretty straightforward.


Here’s the deal: When you pass away, your shares in the company become part of your estate or transfer to your business partner as per your shareholder’s agreement. If there’s no clear plan in place, those shares end up in your estate, to be distributed according to your will.


Enter the buy-and-sell agreement – your solution to these issues. This agreement is backed by life insurance policies on each partner’s life, ensuring enough cash to cover the purchase price. Simultaneously, the agreement establishes the obligation to sell the deceased partner’s shares and the obligation for the surviving partner to buy them.


Now, let’s talk about the risks:


  • Insufficient cash: The remaining owners might not have enough cash to buy the deceased partner’s business interests.
  • Uncertain fair price: Heirs might not be guaranteed a fair price for the business interests, potentially leading to a forced sale.
  • Ownership complications: The remaining owners might face unclear ownership, dealing with heirs or delays in estate settlement.
  • Business capital drain: Funding the purchase could drain the business’s capital, jeopardizing its continuity.


On the flip side, the benefits are significant:


  • Business continuity: The business keeps going without outside interference.
  • Smooth transition: Funds are available for a timely conclusion of the transaction.


For dependents or beneficiaries, the advantages are:


  • Inherited capital: They receive a capital amount instead of dealing with a business they may not know.
  • Financial security: The received capital can replace lost income and contribute to overall estate planning.


Now, let’s consider the importance of a shareholder’s agreement:


This agreement, entered into during the partners’ lifetimes, governs their relationship and outlines what happens to shares in the event of death or retirement. Without it, shares become part of the deceased partner’s estate.


And remember, getting the structure right is essential to qualifying for estate duty exemption. The Estate Duty Act provides exemptions if specific conditions are met.


In conclusion, a buy-and-sell agreement is vital for protecting interests and ensuring the intended transaction occurs. Without it, disputes can end in costly and time-consuming court battles, benefiting no one, especially not the deceased owner’s beneficiaries.

South Africa has been removed from the Grey List.

By PJ Botha • October 30, 2025
South Africa has officially been removed off the Financial Action Task Force's (FATF) grey list as of October 24, 2025. This comes after 33 months of work to strengthen the country's anti-money laundering and counter-terrorism systems. Why Was South Africa Grey Listed in the first place? In February 2023, the FATF placed South Africa on the grey list due to weaknesses in its ability to enforce anti-money laundering regulations. These included ineffective investigations and prosecutions, particularly in severe money laundering and terrorist financing cases. To get off the list, South Africa needed to accomplish 22 action items. By June 2025, the FATF reported that all items had been handled. Although some areas, like as prosecutions, require improvement, this did not prevent the country from being removed from the list. What is the Function of the Financial Intelligence Centre (FIC)? The Financial Intelligence Centre helped South Africa achieve FATF regulations. It enhanced how it oversees businesses and professions that deal with money but are not banks, employing stronger risk assessment tools and compliance measures. The FIC also collaborated extensively with law enforcement, promoting the use of financial intelligence in investigations. This resulted in genuine results, such as the freezing of approximately R157 million in suspected illegal funds and the recovery of nearly R144 million in stolen money. What impact did the listing have on the Economy and Investments? Being on the Grey List increased the cost and complexity of foreign transactions. It also harmed investor confidence, particularly while South Africa holds the G20 presidency in 2025. Financial experts predict that now that the country is no longer on the list, investor sentiment will improve. According to PPS Investments, this may lead to: Improved access to global capital. A stronger Rand. Increased interest in South African stocks A better climate for the local property markets. This change contributes to a more favourable view for South Africa's economy and investment landscape. How do South Africa compares to other countries that was grey listed? South Africa's 33-month stint on the grey list is comparable to other countries. Tanzania required 33 months, Nigeria 25 months, Mozambique 37 months, and Burkina Faso 57 months. What's next? South Africa is already planning for the next FATF mutual evaluation, which is scheduled for 2026-2027. The FIC states that, while leaving the grey list is a significant step forward, the country must continue to improve its mechanisms for combating financial crime.

What Will You Do Every Day in Retirement?

By Francois Le Clus • October 30, 2025
Have you ever stopped to ask yourself: What will I actually do every day when I retire? It sounds like such a simple question, yet very few people think about it in a practical way. You might have a plan for your finances, but have you thought about your time? Will your days be filled with purpose and activity—or will you find yourself just sitting around, wondering what to do next? From my experience working with retired clients, people tend to go one of two ways: they either become passive or they stay active and engaged. When you first retire, the main concern is usually financial. Will my money last for the rest of my life? But after a few months, that anxiety often fades, and a new question emerges: What is my purpose now? I recently read a remarkable book by Bob Buford called Halftime. Buford was extremely successful financially, but tragedy struck when he lost his son. That loss made him reflect deeply on what truly mattered in life. He realized that while money is important, purpose is what gives life meaning. Buford explains this through the Sigmoid Curve : Curve 1 represents the first part of your life—learning, growing, and mastering your craft. This typically takes you up to around age 50, when you might feel like you’ve reached a plateau or are just coasting toward retirement. Curve 2 is the next chapter—when your focus shifts from inward to outward, from success to significance. This is where you find fulfillment by contributing, giving back, and making a difference in your community. The retirees who thrive the most aren’t the ones who just relax all day. They’re the ones who stay involved, serve others, and wake up each morning with a sense of purpose. A Final Thought The Bible tells us that Abraham had his first child at the age of 100, and his wife Sarah was 90. That story reminds us that no matter your age, there’s still a promise and a purpose over your life. You still have something valuable to give. So as you plan your retirement, don’t just think about your finances—think about your purpose. Don’t be passive. Be active. Be intentional. Live with purpose.