Olivier,EtienneVilanculo ,Gladys2025-05-062025-05-062023https://hdl.handle.net/10566/20364This mini-thesis investigates whether s 45 of the Companies Act 71 of 2008 provides adequate protection to creditors in related party transactions. Protecting creditors in such transactions is essential, as it instils confidence in their willingness to lend money to companies for day-to-day operations, with expectation that these loans will be repaid on time. This paper will analyse the amendments introduced by the Companies Act 71 of 2008 which shifted from prohibitive measures outlined in the Companies Act 61 of 1973 regarding financial assistance to related parties. In addition, the paper will analyse how the new approach balances the interests of the parties involved with the company and prevents the abuse that may arise in related party transactions. To achieve this, the thesis will explore the requirements that must be satisfied before providing financial assistance to related parties, as well as the remedies the Act imposes to protect the company and third parties when directors provide financial assistance in violation of s 45 of the Act. Additionally, the paper will offer recommendations for potential amendment to s 45 of the Act. The methodology employed includes a comprehensive review of relevant literature, legislation and an analysis of case law.enCreditor ProtectionFinancial AssistanceCompanies Act 71 of 2008Section 45Solvency and Liquidity testThesis