Regardless of the size of your business and whether your business is with family members or family owned, it makes no difference. Business is business. And part of every business lies the necessity for agreements – sale agreements, distribution agreements, employment agreements and even loan agreements. The fact that the agreement may be between you and your brother does not negate the need for the agreement. In fact, it makes it more necessary.

The starting point for a discussion about digital signatures in the context of South African law is the Electronic Communications and Transactions Act (ECT Act) which was passed in 2002. The ECT Act started with the basic premise that digital communications are no less valid than paper based communications.

I have a buyer who wants to purchase my shares in a residential property owning company to avoid paying transfer duty. Can this be done and is this a loophole that SARS has not closed?

If you want to make it absolutely clear that your company will only regard itself bound by a conventional signature, you must stipulate in your contract of employment (or any other contract) that 'signed' refers to a hand-written signature, excluding any signature appended by 'electronic communication' as defined in the Electronic Communications and Transactions Act, no. 25 of 2002.