Strydom and Another v Snowball Wealth (Pty) Limited and Others (10287/2019)
Strydom and Another v Snowball Wealth (Pty) Limited and Others (10287/2019) [2020] ZAWCHC 103 (11 September 2020)
The court held that the plaintiffs' particulars of claim do not disclose a cause of action under section 26(1) of the Insolvency Act. The facts pleaded show that the shares were sold for a price, which, although below market value, constitutes value in the ordinary sense and is neither illusory nor nominal. Section 26(1) is not triggered by dispositions for inadequate value, but only by those for no value or illusory/nominal value. The authorities relied upon by the plaintiffs to equate inadequate value with no value are outdated or misapplied. The exception is upheld, and the claim is set as…
Source excerpt
- Insolvency Act Section 26
- Voidable Dispositions
- Exception Procedure
- Adequacy Of Value