Laniyan v Negota SSH (Gauteng) Incorporated and Others (09/35083)
Laniyan v Negota SSH (Gauteng) Incorporated and Others (09/35083) [2013] ZAGPJHC 128; [2013] 2 All SA 309 (GSJ) (20 February 2013)
The court found that the first respondent, as the seller's attorneys, acted as agent for the applicant by accepting and holding the purchase price in trust, establishing a contractual relationship. The applicant is therefore a creditor of the first respondent. Section 53(b) of the Companies Act and section 23(1)(a) of the Attorneys Act impose joint and several liability on directors for debts contracted during their periods of office. The respondents' ignorance of the misappropriation does not absolve them of liability. The applicant's payment to the seller's attorneys discharged his obligati…
Source excerpt
- Personal Liability Of Directors
- Contractual Claims Against Attorneys
- Trust Account Misappropriation
- Liquidation Of Attorneys Firm
- Agency In Property Transactions