Van Den Heerden N.O. and Others v Van Tonder (A5076/2018; 407461/2015)
Van Den Heerden N.O. and Others v Van Tonder (A5076/2018; 407461/2015) [2021] ZAGPJHC 486 (20 April 2021)
The court held that the respondent, as business rescue practitioner, breached section 134 of the Companies Act by disposing of Boabab's book debts without obtaining Lombard Insurance's prior consent. However, the respondent acted in accordance with the established practices of the Group, in good faith, and with the bona fide belief that such payments were necessary to keep the companies trading and to attempt a rescue. The respondent relied on legal advice and operated under significant constraints, including incomplete financial records and lack of support from directors. The court found tha…
Source excerpt
- Business Rescue
- Fiduciary Duties
- Financial Assistance
- Disposal Of Secured Assets
- Director Liability
- Statutory Interpretation