Mapalakanye and Others, In Re: Mapakanye and Another v Born-to-Protect Security Services (Pty) Ltd and Others (3437/2018)
Mapalakanye and Others, In Re: Mapakanye and Another v Born-to-Protect Security Services (Pty) Ltd and Others (3437/2018) [2018] ZALMPPHC 28 (29 June 2018)
The court found that although it is legally possible to place a company in final liquidation under business rescue, the applicants failed to establish a reasonable prospect that business rescue would succeed. The company had suffered extensive mismanagement, fraud, and asset dissipation, with most contracts cancelled and goodwill lost. The evidence indicated that a liquidator was better equipped to recover assets and protect creditors' interests. The application appeared to be motivated by an attempt to regain control of company funds rather than a genuine prospect of rescuing the business. T…
Source excerpt
- Business Rescue
- Companies Act Section 131
- Liquidation Vs Business Rescue
- Reasonable Prospect Requirement
- Creditors Interests
- Gross Mismanagement