Venter NO en 'n Ander v Coetzee en Andere (916/2003)
Venter NO en 'n Ander v Coetzee en Andere (916/2003) [2004] ZAFSHC 67 (17 June 2004)
The court found that BSM Marketing Management (Pty) Ltd operated an illegal pyramid scheme, as evidenced by the unrealistic guaranteed returns (45% in 4-6 months, equating to 90% per annum), the absence of genuine underlying business activity, and the use of new investor funds to pay earlier investors. The respondents’ explanations were rejected as far-fetched and untenable. The court confirmed that the liquidators had locus standi to bring the application, as the requirement for Master’s authorisation is intended to protect creditors and members, not to bar proceedings against third parties.…
Source excerpt
- Illegal Pyramid Scheme
- Banking Act Compliance
- Unfair Business Practices
- Liquidation Procedure
- Rule Nisi Confirmation
- Oral Evidence Referral