Bester NO and Another v Wright, Bester NO and Another v Mouton, Bester NO and Another v Van Greunen (5781/2010, 6671/2010, 6673/2010)
Bester NO and Another v Wright, Bester NO and Another v Mouton, Bester NO and Another v Van Greunen (5781/2010, 6671/2010, 6673/2010) [2010] ZAWCHC 177; [2011] 2 All SA 75 (WCC) (15 September 2010)
The court found that the respondents' indebtedness under the loan agreements was not extinguished by the subsequent share buyback and cession agreements. These agreements did not comply with statutory requirements under the Companies Act and did not validly vary or set off the loan debts. The respondents, as directors, breached their fiduciary duties by participating in transactions that diverted investor funds for personal loans and attempted to write off these debts without benefit to the company. The rule in Wilken v Kohler does not apply where the underlying transaction is illegal or cont…
Source excerpt
- Company Liquidation
- Director Fiduciary Duties
- Illegal Loans
- Share Buyback
- Variation Of Contract
- Set Off