Section 11 Consent - Does A Disposal Of A Controlling Interest In A Company Include An Indirect Interest?

Author:Mr Matthew van der Want
Profession:Fasken Martineau
 
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The recent publication in the South Africa Law Journal ("SALJ") of Gary JA Moore & Jerome Veldsman's article entitled Big Brother and the holding company: Ministerial Consent to Dispose of Indirect controlling interests in mining companies, may have some serious consequences. The article analyses section 11 of the Minerals and Petroleum Resources Development Act, 2002 ("MPRDA"), which deals with the requirement of consent for transfers of mining and prospecting rights and interests in them. As the title indicates, the article's focus is on whether ministerial consent is required for a disposal of an indirect controlling interest in a company that holds a mining right or a prospecting right ("right"). The authors say that the MPRDA is not clear on whether section 11(1) is applicable to the disposal of indirect controlling interests in companies which hold rights. The authors maintain, however, that Ministerial consent under section 11(1) is indeed applicable to companies holding rights both directly or indirectly. This...

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