South Africa Case Law

Mahanyelo N.O and Others v Venter (116098/23)

Mahanyelo N.O and Others v Venter (116098/23) [2025] ZAGPPHC 496 (16 May 2025)

Court

North Gauteng High Court, Pretoria

Case number

116098/23

Judge

N L Moila

The court found that the plaintiffs' particulars of claim contain all the necessary averments to sustain a cause of action against the defendant. The allegations provide sufficient detail regarding the liquidation, the defendant's role as director, and the alleged fraudulent conduct. The defendant's complaints relate to facta probantia (evidence) rather than facta probanda (material facts required to be pleaded). The court accepted the pleaded facts as true and held that, on any reasonable interpretation, the particulars of claim disclose a cause of action. The exception was therefore dismiss…

Source excerpt

• Exception To Particulars Of Claim
• Companies Act Liability
• Liquidation Proceedings
• Fraudulent Trading
• Director Liability

VBS Mutual Bank (In Liquidation) v Ramavhunga and Another (25062/2018)

VBS Mutual Bank (In Liquidation) v Ramavhunga and Another (25062/2018) [2019] ZAGPJHC 295 (23 August 2019)

Court

South Gauteng High Court, Johannesburg

Case number

25062/2018

Judge

K E Matojane

The court found that the applicant had established a liquidated claim against the respondents for losses arising from their participation in a fraudulent scheme at VBS Mutual Bank. The respondents failed to raise bona fide disputes of fact, and their denials were found to be untenable and lacking in credibility. The evidence, including affidavits and investigative findings, demonstrated that Mr Ramavhunga received illicit payments, failed to declare them, and was unable to pay his debts, indicating factual insolvency. The court held that sequestration would be to the advantage of creditors, a…

Source excerpt

• Insolvency Act
• Liquidated Claim
• Factual Insolvency
• Admissibility Of Hearsay
• Fiduciary Duties
• Fraudulent Trading

SMM Holdings (Pvt) Ltd v Mawere and Another (20235/2006)

SMM Holdings (Pvt) Ltd v Mawere and Another (20235/2006) [2012] ZAGPJHC 186 (11 October 2012)

Court

South Gauteng High Court, Johannesburg

Case number

20235/2006

Judge

N.P. Willis

The court held two company directors jointly liable under section 424 for a fraudulent scheme that diverted asbestos-sale proceeds away from the plaintiff.

• Director Liability
• Fraudulent Trading
• Reckless Trading
• Personal Liability Of Directors
• Company Liquidation
• Section 424 Companies Act

Ozinsky NO v Lloyd and Others (283/92)

Ozinsky NO v Lloyd and Others (283/92) [1995] ZASCA 34; 1995 (2) SA 915 (AD); [1995] 2 All SA 373 (A) (29 March 1995)

Court

Supreme Court of Appeal

Case number

283/92

Judges

Nienaber JA, Joubert JA, E M Grosskopf JA, Nestadt JA, Howie JA

The Supreme Court of Appeal held that the directors of Atlantis did not act recklessly or with intent to defraud creditors as contemplated by section 424(1) of the Companies Act. The first defendant demonstrated a genuine commitment to the business, injecting substantial funds and intending to pay all creditors. The second defendant, though making errors in judgment, believed in the company's future and did not act fraudulently or recklessly. The third defendant, while remaining a director, was largely passive and did not manipulate the affairs of the company for personal benefit. The court f…

Source excerpt

• Reckless Trading
• Personal Liability Of Directors
• Section 424 Companies Act
• Fraudulent Trading