Oosthuizen and Another v Robberts (23669/2004)
Oosthuizen and Another v Robberts (23669/2004) [2008] ZAGPHC 274 (12 September 2008)
The court found that the payments made by the liquidated close corporations to the defendant constituted voidable preferences under section 29 of the Insolvency Act. The payments were made within six months prior to liquidation, at a time when the corporations' liabilities exceeded their assets, and had the effect of preferring the defendant over other creditors. The defendant failed to prove that the payments were made in the ordinary course of business, given the usurious interest rates and the manner of payment, which included cash transactions and internet transfers from the corporations'…
Source excerpt
- Insolvency Act Voidable Preference
- Illegal Pyramid Scheme
- Unlawful Deposit Taking
- Creditor Preference
- Liquidation Procedure