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South Africa Case Law

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Commercial And Corporate [2013] ZASCA 52

Kadoma Trading (Pty) Ltd v Noble Crest CC (452/2012)

Kadoma Trading (Pty) Ltd v Noble Crest CC (452/2012) [2013] ZASCA 52; 2013 (3) SA 338 (SCA); [2013] 3 All SA 126 (SCA) (28 March 2013)

Court
Supreme Court of Appeal
Case number
452/2012
Judges
Maya, Shongwe, Pillay, Erasmus, Swain

Section 26(7) of the Close Corporations Act unambiguously provides that upon restoration, a corporation is deemed to have continued in existence as from the date of deregistration as if it were never deregistered. This retroactive deeming validates all acts performed during the period of deregistration, including the conclusion of contracts. The administrative restoration process is sufficient and does not require judicial intervention. The appellant's interpretation, which would limit the effect of restoration to prospective acts only, is inconsistent with the statutory language and establis…

Source excerpt

  • Close Corporations Act
  • Deregistration And Restoration
  • Contract Validity
  • Retrospective Validation
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Commercial And Corporate [2009] ZAGPPHC 175

Sekunjalo Piping Systems (Pty) Ltd v Mmolawa and Another (2008/07)

Sekunjalo Piping Systems (Pty) Ltd v Mmolawa and Another (2008/07) [2009] ZAGPPHC 175 (20 November 2009)

Court
North Gauteng High Court, Pretoria
Case number
2008/07
Judge
T M Makgoka

The court found that section 26(5) of the Close Corporation Act does not apply in circumstances where the close corporation's registration has been restored prior to the institution of proceedings. The facts of this case differ from Mouton v Boland Bank Ltd, as the respondents did not manipulate the deregistration and acted promptly to restore the corporation. Since the corporation was in existence at the time of the application, the members cannot be held personally liable for its debts under section 26(5). The application was therefore dismissed.

Source excerpt

  • Close Corporation Liability
  • Deregistration And Restoration
  • Personal Liability Of Members
  • Section 26 Close Corporation Act
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About this LexChat collection

South Africa decisions are organised by court, judge, legal area and indexed issue so a practitioner can move from a proposition to a citable authority with the surrounding context intact.

Source links and collection timestamps are retained alongside the indexed records.