Ragavan and Others v Optimum Coal Terminal (Pty) Ltd and Others (52832/2021)
Ragavan and Others v Optimum Coal Terminal (Pty) Ltd and Others (52832/2021) [2022] ZAGPJHC 22; 2022 (3) SA 512 (GJ) (18 January 2022)
The court held that the Companies Act, specifically Chapter 6, draws a clear distinction between the powers of directors and business rescue practitioners (BRPs) during business rescue proceedings. The Act unequivocally transfers full management control to the BRPs, limiting directors to governance functions that do not extend to external management decisions such as voting at section 151(1) meetings. The BRPs, not the directors, are empowered to vote at such meetings, and there is no statutory requirement for a mandate from an adopted business rescue plan before the BRPs may exercise this ri…
Source excerpt
- Business Rescue
- Director Powers
- Creditor Voting Rights
- Mandate Requirements
- Companies Act Interpretation