McCarthy Ltd. v Gore NO (163/06)
McCarthy Ltd. v Gore NO (163/06) [2007] ZASCA 32; [2007] SCA 32 (RSA) ; [2007] 4 All SA 1212 (SCA) ; 2007 (6) SA 366 (SCA) (28 March 2007)
The Supreme Court of Appeal held that the definition of 'trader' in section 2 of the Insolvency Act is confined to the primary business activities of an enterprise and does not extend to incidental activities such as the sale of vehicles or factoring of book debts. The company’s main business was transport haulage, and the sale of vehicles and book debts were merely incidental to that business. The court rejected the liquidator’s argument that substantial incidental activities could render the company a 'trader' under the Act. The trial court erred by adopting an overly broad interpretation o…
Source excerpt
- Insolvency Act
- Definition Of Trader
- Disposition Of Property
- Notice Of Sale
- Liquidation
- Incidental Business Activities