Constantaras v BCE Foodservice Equipment (Pty) Ltd (208/06)
Constantaras v BCE Foodservice Equipment (Pty) Ltd (208/06) [2007] ZASCA 86; [2007] SCA 86 (RSA) ; 2007 (6) SA 338 (SCA) (1 June 2007)
The Supreme Court of Appeal held that section 23(2) of the Close Corporations Act is peremptory and imposes personal liability on the signatory of a cheque issued on behalf of a close corporation if the cheque does not contain the prescribed particulars, regardless of the parties' intentions or the holder's knowledge. The defence of rectification is not available to defeat statutory liability, as the liability arises ex lege and is not contractual. The court further held that a defendant whose plea is struck out on exception is entitled, as a matter of course, to an opportunity to amend the p…
Source excerpt
- Close Corporations Act
- Personal Liability Of Signatory
- Rectification
- Exception And Striking Out
- Statutory Compliance
- Cheque Liability