De Waal v African National Congress Youth League (49137/2017) [2018] ZAGPJHC 694 (30 July 2018)

De Waal v African National Congress Youth League (49137/2017) [2018] ZAGPJHC 694 (30 July 2018)

The court found that the African National Congress Youth League, by virtue of its constitution and the common law, qualifies as a body corporate (universitas personarum) and is therefore susceptible to liquidation under Chapter 14 of the Companies Act 1973. The applicant established that the respondent was unable to pay its debts, as evidenced by two nulla bona returns and the absence of any opposition or evidence to the contrary. The statutory formalities for winding up, including service and security, were satisfied. The court held that the age of the nulla bona return did not preclude reliance on it, particularly given the lack of any indication that the respondent's financial position...

Citation
[2018] ZAGPJHC 694
Parties
Applicant: Hugo Johan De Waal; Respondent: African National Congress Youth League
Court
South Gauteng High Court, Johannesburg
Jurisdiction
South Africa
Judgment Date
30 July 2018
Case Number
49137/2017
Procedural Posture
Winding Up Application / Final Order
Outcome
The respondent is placed under final winding up in the hands of the Master.
Judges
S E Weiner
Legal Topics
Winding Up of Body Corporate, Nulla Bona Return, Companies Act 1973, Universitas Personarum, Liquidation Proceedings
Commercial and Corporate Winding Up of Body Corporate Nulla Bona Return Companies Act 1973 Universitas Personarum Liquidation Proceedings

Case Brief

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Parties

Hugo Johan De Waal

Applicant

African National Congress Youth League

Respondent

Procedural Posture

Winding Up Application / Final Order

Legal Issues

  1. 1 Whether the respondent qualifies as a body corporate susceptible to liquidation under Chapter 14 of the Companies Act 1973.
  2. 2 Whether the nulla bona return relied upon by the applicant is sufficiently recent to establish insolvency.
  3. 3 Whether the statutory formalities for winding up have been complied with.

Ratio Decidendi

The court found that the African National Congress Youth League, by virtue of its constitution and the common law, qualifies as a body corporate (universitas personarum) and is therefore susceptible to liquidation under Chapter 14 of the Companies Act 1973. The applicant established that the respondent was unable to pay its debts, as evidenced by two nulla bona returns and the absence of any opposition or evidence to the contrary. The statutory formalities for winding up, including service and security, were satisfied. The court held that the age of the nulla bona return did not preclude reliance on it, particularly given the lack of any indication that the respondent's financial position...

Court Disposition

The respondent is placed under final winding up in the hands of the Master.

Orders

  • The respondent is placed under final winding-up in the hands of the Master.
  • Costs of the winding-up will be costs in the winding up.