Firm-O-Seal CC v Prinsloo & Van Eeden Inc and Another (483/22)
Firm-O-Seal CC v Prinsloo & Van Eeden Inc and Another (483/22) [2023] ZASCA 107; 2024 (6) SA 52 (SCA) (27 June 2023)
The Supreme Court of Appeal held that the high court misconstrued the enquiry by focusing solely on voidness under section 137(4) of the Companies Act. The correct approach is to determine whether the claims asserted required the approval of the business rescue practitioner and, if so, whether such approval was obtained. The evidence showed that the practitioner’s representative confirmed consent prior to the institution of the action, and any subsequent confusion was remedied by the practitioner’s written ratification and power of attorney. The appellant therefore had the requisite locus sta…
Source excerpt
- Locus Standi
- Business Rescue
- Companies Act Section 137
- Special Plea
- Ratification Of Proceedings