South Africa Case Law

Masibuyisane Services (Pty) Ltd v Eqstra Corporation (Pty) Ltd (1245/2019)

Masibuyisane Services (Pty) Ltd v Eqstra Corporation (Pty) Ltd (1245/2019) [2020] ZASCA 159 (1 December 2020)

Court

Supreme Court of Appeal

Case number

1245/2019

Judges

Maya, Dlodlo, Nicholls, Matojane, Sutherland

The Supreme Court of Appeal held that the conversion of a close corporation into a company does not create a new juristic person; rather, the same legal entity continues to exist in a different corporate form. Statutory provisions explicitly provide for continuity of rights, obligations, and personality. The misdescription of the entity in the suretyship as a close corporation, when it was in fact a company, does not invalidate the contract. The directors and members acted for the same entity throughout, and the appellant's attempt to repudiate the suretyship on grounds of nomenclature is wit…

Source excerpt

• Conversion Of Close Corporation
• Juristic Personality Continuity
• Suretyship Validity
• Rescission Of Judgment