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Global rules on foreign direct investment (FDI)
Cross-border acquisitions and investments increasingly trigger foreign direct investment (FDI) screening requirements.
South Africa | Publication | May 2024
On May 29, 2024, South Africa heads to the polls, and following the substantial legislative reform brought on by the New Nation Movement judgment, voters can vote for an independent candidate for the first time. The judgment introduced independent candidates into our political system and prompted Parliament to pass the Electoral Amendment Act.
The Act provides for two key reforms:
The Act was challenged in December 2023 and the Constitutional Court was twice tasked with evaluating the Act’s reforms.
In One Movement South Africa NPC v President of the Republic of South Africa and Others, the applicant argued that the 15% voter signature requirement was unconstitutional and invalid as it limits the rights to freedom of association, freedom to make political choices and to stand for and hold public office. The Constitutional Court agreed and ordered that independent candidates were only required to obtain 1000 signatures in order to register for participation. This ‘reading in’ remedy, which operated with immediate interim effect, made contesting the 2024 election more accessible for independent candidates.
One Movement also argued that the recalculation method was unconstitutional as it does not provide for proportional representation, infringed on an individual’s right to vote by disregarding the votes cast for an independent candidate, and in effect favoured political parties. The Court found that the recalculation method did not infringe on the right to vote.
In her minority dissenting judgment, Justice Theron found that the recalculation method benefits large political parties and skews proportional representation. However, because One Movement did not suggest any suitable alternatives, and given the urgency brought on by the imminent election, the Court found that it was not in the interests of justice to find the current recalculation method unconstitutional.
In Independent Candidate Association South Africa NPC v President of the Republic of South Africa and Others, the applicant argued that the 200/200 seat split unconstitutionally favoured political parties, because independent candidates are only allowed to contend for regional seats. The Constitutional Court found that the 200/200 seat split does not infringe on any political rights under section 19 of the Constitution, nor does it infringe on the right to equality.
Authored by Caroline Cotton and Norton Rose Fulbright’s Impact Litigation Team, which litigates on the country’s Bill of Rights to achieve legal reform by holding the State, and other role players, constitutionally accountable.
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Cross-border acquisitions and investments increasingly trigger foreign direct investment (FDI) screening requirements.
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On February 2, 2024, the Belgian Presidency of the Council of the European Union confirmed that the Committee of Permanent Representatives had signed the Artificial Intelligence (AI) Regulation, referred to as the AI Act. Approval by the EU Parliament followed on 13 March 2024, and the AI Act is likely to appear in the EU’s Official Journal around May 2024. The AI Act aims to establish a stringent legal framework governing the development, marketing, and utilisation of artificial intelligence within the region, thereby marking a significant advancement in the regulation of this burgeoning domain.
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The private credit market and direct lending have grown and diversified immensely in the past decade, offering alternative sources and terms of debt compared to those historically provided by the syndicated leveraged loan and public issuance markets. Consequently, they are fast becoming pivotal components in the capital ecosystem, so much so that the Bank of England consider that the private credit market is currently responsible for approximately $1.8 trillion of debt issuance, which is four times its size in 2015. This growth has been particularly pronounced in Europe and the US but there has also been significant activity in Asia.
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