Crous v Wynberg Boys High School and Others (200/2024)
Crous v Wynberg Boys High School and Others (200/2024) [2025] ZASCA 107 (18 July 2025)
The Supreme Court of Appeal held that section 65 of the Close Corporations Act does not impose personal liability on members solely by virtue of their membership when gross abuse of juristic personality is established. Liability under section 65 requires that the member's conduct amounts to or contributes to the gross abuse. The appellant's uncontroverted evidence showed he was not involved in the fraudulent scheme conducted through the close corporation. The High Court erred in holding the appellant liable based only on his membership and in misapplying the fiduciary duty owed by members, wh…
Source excerpt
- Close Corporations Act
- Personal Liability Of Members
- Gross Abuse Of Juristic Personality
- Fiduciary Duty
- Piercing The Corporate Veil