South Africa Case Law

Minister of Communications and Digital Technologies and Another v South African Post Office SOC Ltd and Others

Minister of Communications and Digital Technologies and Another v South African Post Office SOC Ltd and Others [2023] ZAGPPHC 534; 2023-051134 (10 July 2023)

Court

North Gauteng High Court, Pretoria

Case number

2023-051134

Judge

E van der Schyff

The High Court placed SAPO under supervision and business rescue, allowed the Post Office Retirement Fund to intervene, and appointed interim practitioners.

• Business Rescue
• Companies Act Section 131
• State Owned Enterprise Distress
• Creditor Compromise
• Appointment Of Business Rescue Practitioner
• Business-rescue

Tayob and Another v Shiva Uranium (Pty) Ltd and Others (336/2019)

Tayob and Another v Shiva Uranium (Pty) Ltd and Others (336/2019) [2020] ZASCA 162 (8 December 2020)

Court

Supreme Court of Appeal

Case number

336/2019

Judges

Cachalia, Saldulker, Van der Merwe, Schippers, Poyo-Dlwati

The Supreme Court of Appeal held that the board of directors of Shiva Uranium (Pty) Ltd had the statutory power under s 139(3) of the Companies Act 71 of 2008 to appoint substitute business rescue practitioners upon the resignation of the previous practitioners. The Act does not confer any power on a practitioner to appoint another practitioner, nor does it require the board to act with the approval of the practitioner in making such an appointment. The appointment of a practitioner is a governance function of the board, not a management function subject to the authority of the practitioner.…

Source excerpt

• Business Rescue
• Companies Act 71 Of 2008
• Appointment Of Business Rescue Practitioner
• Board Powers
• Condonation
• Leave To Appeal

Essack v Resfam Investments CC and Others (81703/2019)

Essack v Resfam Investments CC and Others (81703/2019) [2020] ZAGPPHC 145 (14 April 2020)

Court

North Gauteng High Court, Pretoria

Case number

81703/2019

Judge

N Davis

The High Court dismissed an application to set aside a business rescue and winding-up order, finding no basis to undo the liquidation and awarding costs.

• Business Rescue Proceedings
• Winding Up Order
• Appointment Of Business Rescue Practitioner
• Court Jurisdiction
• Creditor Rights
• Business-rescue

Essack v Resfam Investments CC (In Liquidation) and Others (81703/2019)

Essack v Resfam Investments CC (In Liquidation) and Others (81703/2019) [2019] ZAGPPHC 575 (7 November 2019)

Court

North Gauteng High Court, Pretoria

Case number

81703/2019

Judge

Ranchod

The High Court granted an urgent interdict stopping the auction of company property pending a main application challenging a business rescue practitioner’s appointment and related liquidation orders.

• Business Rescue
• Liquidation Proceedings
• Interdict
• Appointment Of Business Rescue Practitioner
• Statutory Compliance
• Business-rescue

Gqwaru and Another v Magalela Architects CC and Another (19959/2016)

Gqwaru and Another v Magalela Architects CC and Another (19959/2016) [2017] ZAGPJHC 32 (23 February 2017)

Court

South Gauteng High Court, Johannesburg

Case number

19959/2016

Judge

Ratshibvumo

The court found that the first respondent is financially distressed and unable to pay its debts, satisfying the statutory requirements for business rescue. The applicants’ undertakings not to demand payment of substantial debts and the existence of ongoing projects with significant potential income support a reasonable prospect of rescuing the business. The breakdown of trust and allegations of fraud do not preclude business rescue, as the practitioner has statutory powers to investigate and refer any evidence of misconduct. The court rejected the respondents’ argument that liquidation is pre…

Source excerpt

• Business Rescue
• Companies Act 71 Of 2008
• Financial Distress
• Liquidation Vs Business Rescue
• Appointment Of Business Rescue Practitioner

Industrial Development Corporation of SA Limited and Another v Schroeder N.O and Others (1958/2015)

Industrial Development Corporation of SA Limited and Another v Schroeder N.O and Others (1958/2015) [2015] ZAECMHC 65 (17 September 2015)

Court

Eastern Cape High Court, Mthatha

Case number

1958/2015

Judge

Z M Nhlangulela

The court found that Laman (Pty) Ltd is financially distressed and that the applicants have demonstrated a reasonable prospect for rescuing the company through business rescue proceedings. The applicants, as majority creditors, have previously provided funding and are willing to inject further capital under business rescue, which could enable the company to continue trading, preserve jobs, and maximise returns for all stakeholders. The opposition's arguments regarding lack of fixed funding, equipment issues, and creditor protection were not sufficient to outweigh the prospects of business res…

Source excerpt

• Business Rescue
• Companies Act 71 Of 2008
• Liquidation Proceedings
• Creditor Rights
• Appointment Of Business Rescue Practitioner

National Union of Metal Workers of South Africa v Wilro Supplies CC and Another (34446/2015)

National Union of Metal Workers of South Africa v Wilro Supplies CC and Another (34446/2015) [2015] ZAGPPHC 1146 (24 June 2015)

Court

North Gauteng High Court, Pretoria

Case number

34446/2015

The court granted business rescue relief, placing Wilro Supplies CC under supervision and appointing Sandra Beswick as interim business rescue practitioner.

• Business Rescue
• Companies Act 2008
• Appointment Of Business Rescue Practitioner
• Business-rescue
• Companies-act-2008
• Interim-business-rescue-practitioner

Optifeeds (Pty) Ltd v Business Depot 2 CC t/a GS Poultry and Others (6885/2014)

Optifeeds (Pty) Ltd v Business Depot 2 CC t/a GS Poultry and Others (6885/2014) [2014] ZAGPPHC 276 (13 May 2014)

Court

North Gauteng High Court, Pretoria

Case number

6885/2014

Judge

Janse van Nieuwenhuizen

The court found that the first respondent failed to comply with section 129(3)(b) of the Companies Act by appointing the business rescue practitioner more than five days after filing the resolution, resulting in the lapse and nullity of the business rescue proceedings. However, the court was satisfied that, given the recent government offer to purchase the business and the ongoing operations maintained by the interim practitioner, there was a reasonable prospect of rescuing the first respondent. Accordingly, the court granted an order placing the first respondent under supervision and commenc…

Source excerpt

• Business Rescue
• Companies Act Section 129
• Companies Act Section 131
• Appointment Of Business Rescue Practitioner
• Creditors Rights
• Liquidation Proceedings

Breedt v P G Breedt Boorkontrakteurs CC and Others (10581 / 2012)

Breedt v P G Breedt Boorkontrakteurs CC and Others (10581 / 2012) [2013] ZAGPPHC 17 (4 February 2013)

Court

North Gauteng High Court, Pretoria

Case number

10581 / 2012

Judge

Hughes

The court found that the applicant failed to provide sufficient factual detail and supporting documentation to establish a reasonable prospect of rescuing the first respondent. The alleged contract with MCC, which formed the basis of the proposed business rescue, was not formalized or disclosed for scrutiny, undermining the credibility of the rescue plan. Furthermore, the proposed business rescue practitioner was perceived to be conflicted due to prior involvement with the provisional plan, contrary to statutory requirements for independence. The application was deemed to be a delay tactic la…

Source excerpt

• Business Rescue
• Companies Act Section 131
• Financial Distress
• Appointment Of Business Rescue Practitioner

Employees of Solar Spectrum Trading 83 (Pty) Limited v Afgri Operation Limited and Another (6418/2011, 18624/2011, 66226/2011, 66226/2011, 66226A/11)

Employees of Solar Spectrum Trading 83 (Pty) Limited v Afgri Operation Limited and Another (6418/2011, 18624/2011, 66226/2011, 66226/2011, 66226A/11) [2012] ZAGPPHC 359 (16 May 2012)

Court

North Gauteng High Court, Pretoria

Case number

6418/2011, 18624/2011, 66226/2011, 66226A/11

Judge

Kollapen

The court granted business rescue for Solar Spectrum Trading 83 (Pty) Ltd, dismissed provisional judicial management, suspended liquidation, and appointed a practitioner.

• Business Rescue
• Companies Act 71 Of 2008
• Judicial Management
• Liquidation Suspension
• Appointment Of Business Rescue Practitioner
• Business-rescue