South Africa Case Law

FirstRand Bank Ltd v KJ Foods CC (In business rescue) (734/2015)

FirstRand Bank Ltd v KJ Foods CC (In business rescue) (734/2015) [2017] ZASCA 50; [2017] 3 All SA 1 (SCA); 2017 (5) SA 40 (SCA) (26 April 2017)

Court

Supreme Court of Appeal

Case number

734/2015

Judges

Mpati, Theron, Seriti, Van Der Merwe, Schoeman

The Supreme Court of Appeal held that the determination of whether a vote against a business rescue plan is inappropriate under section 153(1)(a)(ii) of the Companies Act entails a single enquiry: whether it is reasonable and just to set aside the vote, considering the interests of the dissenting creditor, the provisions made for them in the plan, and the estimated return in liquidation. The appellant, as a secured creditor, would receive full payment under both the business rescue plan and liquidation, with no prejudice to its interests. The business rescue plan provided substantial benefits…

Source excerpt

• Business Rescue
• Creditors Voting Rights
• Companies Act Interpretation
• Setting Aside Vote
• Liquidation Vs Rescue