Mashiloane v Lopez and Others (25790/2014)
Mashiloane v Lopez and Others (25790/2014) [2016] ZAGPPHC 66 (26 January 2016)
The court found that the sale and transfer of membership interest to the fourth respondent, held on behalf of the seventh respondent, was in direct contravention of section 29(1) of the Close Corporations Act, which prohibits juristic persons from holding membership interests in a close corporation. The purported ratification of the transaction by the members could not cure the statutory invalidity. The membership interest held by the fourth respondent was declared null and void and ordered to be restored to the corporation. The court further held that, in terms of section 63(d), the fourth a…
Source excerpt
- Close Corporations Act
- Invalid Membership Interest
- Statutory Compliance
- Unfairly Prejudicial Conduct
- Joint Liability For Debt