South Africa Case Law

Chater Developments v Waterkloof Marina Estates and Another (1025/2013)

Chater Developments v Waterkloof Marina Estates and Another (1025/2013) [2014] ZASCA 198; 2015 (5) SA 138 (SCA) (28 November 2014)

Court

Supreme Court of Appeal

Case number

1025/2013

Judges

Navsa ADP, Theron, Wallis, Mbha JJA, Dambuza AJA

The SCA held that a bona fide purchase from an unauthorised liquidator was valid under section 82(8) of the Insolvency Act, read with section 339 of the Companies Act.

• Liquidation Of Companies
• Powers Of Liquidator
• Sale Of Assets In Liquidation
• Good Faith Purchaser
• Application Of Insolvency Act
• Company-liquidation

Waterkloof Marina Estates (Pty) Ltd v Charter Development (Pty) Ltd and Others (64309/2009)

Waterkloof Marina Estates (Pty) Ltd v Charter Development (Pty) Ltd and Others (64309/2009) [2013] ZAGPPHC 543 (10 May 2013)

Court

North Gauteng High Court, Pretoria

Case number

64309/2009

Judge

Pretorius

The High Court held that a liquidator’s sale of shares to a bona fide purchaser was valid and enforceable under section 82(8) of the Insolvency Act.

• Liquidation Of Companies
• Authority Of Liquidator
• Sale Of Company Shares
• Application Of Insolvency Act
• Administrative Action
• Enforceability Of Contract

Legh v Nungu Trading 353 (Pty) Ltd and Another (3/07)

Legh v Nungu Trading 353 (Pty) Ltd and Another (3/07) [2007] ZASCA 122; [2007] SCA 122 (RSA) ; 2008 (2) SA 1 (SCA) ; (27 September 2007)

Court

Supreme Court of Appeal

Case number

3/07

Judges

Howie, Heher, Ponnan, Mlambo, Malan

Section 20(1)(c) of the Insolvency Act does not apply to companies in winding up by virtue of section 339 of the Companies Act, as the legislative scheme of the Companies Act provides its own mechanisms for asset custody, control, and distribution. The property of a company in liquidation remains vested in the company, not in the liquidator, and the statutory purpose of winding up would be undermined if the sole asset were transferred to a third party outside the liquidation process. The declaratory order permitting transfer of the company's sole asset to Nungu Trading was legally unsustainab…

Source excerpt

• Winding Up Of Companies
• Application Of Insolvency Act
• Stay Of Execution
• Transfer Of Property On Winding Up
• Creditor Rights