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South Africa decisions
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Sydwell Trading CC and Others v Sean Pillay and Company (Pty) Ltd (4581/2021) [2023] ZAKZDHC 24 (16 May 2023)
High Court judgment holding a tax services company and the deceased owner liable for misappropriated VAT funds, unpaid SARS returns, interest, and costs.
Venator Africa (Pty) Limited v Bekker and Another (8800/2021P) [2022] ZAKZPHC 50; [2022] 4 All SA 600 (KZP) (16 September 2022)
The court held that section 22(1) of the Companies Act does not impose personal liability on directors to third parties for reckless or fraudulent trading by the company. Liability for directors is specifically regulated by section 77 of the Companies Act, which provides a remedy only to the company itself, not to creditors or other third parties. The court found that the plaintiff's reliance on section 218(2) read with section 22(1) was misplaced, as the legislature did not intend to create personal liability for directors to creditors in the absence of express statutory provision. The line…
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Metro Minds (Pty) Ltd v Pienaar (14399/2018) [2020] ZAGPPHC 817 (17 December 2020)
The High Court held a company director personally liable for a subcontractor debt and declared him delinquent after finding reckless, insolvent trading and asset diversion.
Heygi and Another v Minister of Police NO and Others (25328/2016; 25329/2016) [2018] ZAGPPHC 283 (23 January 2018)
The High Court dismissed exceptions to counterclaims, holding that the pleaded facts could support personal liability under the Companies Act.
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