South Africa Case Law

Afrisam (South Africa) (Proprietary) Limited v Maleth Investment Fund (Proprietary) Limited (651/2018)

Afrisam (South Africa) (Proprietary) Limited v Maleth Investment Fund (Proprietary) Limited (651/2018) [2019] ZASCA 139 (1 October 2019)

Court

Supreme Court of Appeal

Case number

651/2018

Judges

Navsa, Wallis, Dambuza, Molemela, Mbatha

The Supreme Court of Appeal held that an intervening voluntary winding-up did not extinguish a pending compulsory winding-up application, and fixed the effective date under section 340(2)(a).

• Company Winding Up
• Creditors Voluntary Liquidation
• Compulsory Liquidation
• Impeachable Dispositions
• Voidable Preferences
• Undue Preferences

Proud Afrique Trading 256 (Pty) Ltd v Tikon Projects SA (Pty) Ltd (60328/2016)

Proud Afrique Trading 256 (Pty) Ltd v Tikon Projects SA (Pty) Ltd (60328/2016) [2016] ZAGPPHC 1021 (9 December 2016)

Court

North Gauteng High Court, Pretoria

Case number

60328/2016

Judge

K La M Manamela

The court held that section 346(1)(e) of the Companies Act 61 of 1973 expressly permits the court to order the winding up of a company already under voluntary liquidation. There is no statutory requirement that the voluntary liquidation process be set aside before a compulsory winding-up application can be entertained. The respondent's conduct in pursuing voluntary liquidation while engaging in opposition to the application was found to be potentially abusive and not bona fide. The court exercised its discretion to grant a provisional winding-up order, issuing a rule nisi to allow the respond…

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• Compulsory Liquidation
• Voluntary Liquidation
• Companies Act 1973
• Creditor Rights

Taboo Trading 232 (Pty) Ltd v Pro Wreck Scrap Metal CC; Joubert v Pro Wreck Scrap Metal CC (6366/2013; 7159/2013)

Taboo Trading 232 (Pty) Ltd v Pro Wreck Scrap Metal CC; Joubert v Pro Wreck Scrap Metal CC (6366/2013; 7159/2013) [2013] ZAKZPHC 40; 2013 (6) SA 141 (KZP) (10 July 2013)

Court

Kwazulu-Natal High Court, Pietermaritzburg

Case number

6366/2013; 7159/2013

Judge

C.J. Hartzenberg

The court held that the business rescue application did not suspend the liquidation proceedings because it failed to comply with the statutory requirements of service on the Commission and notification of affected persons as required by s 131(2) of the Companies Act. The application was procedurally and substantively flawed, lacking urgency and failing to demonstrate a reasonable prospect of rescuing the close corporation. The court found that Taboo Trading had established its claim as a creditor and that Pro Wreck Scrap Metal CC was unable to pay its debts, satisfying the requirements for pr…

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• Business Rescue Proceedings
• Compulsory Liquidation
• Creditor Intervention
• Interpretation Of Companies Act
• Urgent Applications

Michelin Tyre Company (South Africa)(Pty) Ltd v Janse Van Rensburg and Others (198/2001)

Michelin Tyre Company (South Africa)(Pty) Ltd v Janse Van Rensburg and Others (198/2001) [2002] ZASCA 55; 2002 (5) SA 239 (SCA) (29 May 2002)

Court

Supreme Court of Appeal

Case number

198/2001

Judges

Hefer, Zulman, Brand, Nugent, Lewis

The Supreme Court of Appeal held that section 417 of the Companies Act 61 of 1973 is confined to windings-up by the court and does not apply to voluntary windings-up. The court found that the wording of section 417, particularly the reference to a 'winding-up order', clearly indicates that the section is intended only for compulsory windings-up. The court rejected the appellant's argument that the opening words of the section are broad enough to include voluntary windings-up, noting that the remainder of the section restricts its application. The court also dismissed the argument for purposiv…

Source excerpt

• Companies Act Section 417
• Winding Up
• Compulsory Liquidation
• Voluntary Liquidation