Mouton v Park 2000 Development 11 (Pty) Ltd and Others; In Re Stewart NO v Mouton and Others (1070/19; 8488/16; 2535/19)
Mouton v Park 2000 Development 11 (Pty) Ltd and Others; In Re Stewart NO v Mouton and Others (1070/19; 8488/16; 2535/19) [2019] ZAWCHC 90; [2019] 4 All SA 133 (WCC) ; 2019 (6) SA 105 (WCC) (23 July 2019)
The court found that the liquidation proceedings against Park 2000 were 'initiated' when the resolution to launch them was adopted, not when the liquidation application was filed at court. The business rescue resolution was adopted after the liquidation resolution and thus in breach of section 129(2)(a) of the Companies Act 71 of 2008. Furthermore, the business rescue resolution was not passed by the requisite majority of directors, rendering it a nullity. The court rejected the respondents' version as unreliable and contrived, noting contradictory affidavits and lack of credibility. The busi…
Source excerpt
- Business Rescue
- Companies Act 71 Of 2008
- Resolution Validity
- Liquidation Initiation
- Director Authority