Gihwala NO and Another v Bam (4268/2008)
Gihwala NO and Another v Bam (4268/2008) [2012] ZAWCHC 264 (23 May 2012)
The court found that the payments made to the defendant for the sale of shares were in contravention of section 38 of the old Companies Act and constituted illegal financial assistance. The agreement and payments were void for illegality, and the defendant was unjustly enriched. The defence of res judicata failed because the parties and causes of action differed from the prior litigation, and the curators' claim was not prescribed as prescription only began running upon their appointment. The fraudulent conduct and knowledge of the directors could be imputed to the companies, but not to the c…
Source excerpt
- Unjust Enrichment
- Condictio Ob Turpem Vel Iniustam Causam
- Section 38 Companies Act
- Prescription
- In Pari Delicto
- Curatorship Liability