Freidlein Company (Pty) Ltd v Simaan and Others (2009/45807)
Freidlein Company (Pty) Ltd v Simaan and Others (2009/45807) [2012] ZAGPJHC 16 (8 February 2012)
The court held that upon the sanctioning and implementation of a compromise and scheme of arrangement under section 311 of the Companies Act, in terms of which creditors are deemed to have ceded their claims against the company to the proposer, any rights they might have had against representatives of the company under section 424(1) are extinguished. The existence of debts or liabilities is a prerequisite for the operation of section 424(1), and once these are extinguished by the agreement of creditors and the sanction of the court, no further remedy under section 424(1) is available. The co…
Source excerpt
- Companies Act Section 311
- Companies Act Section 424
- Scheme Of Arrangement
- Deemed Cession
- Locus Standi
- Director Liability