Tuning Fork (Pty) Ltd T/A Balanced Audio v Greeff and Another (18136/13)
Tuning Fork (Pty) Ltd T/A Balanced Audio v Greeff and Another (18136/13) [2014] ZAWCHC 78; 2014 (4) SA 521 (WCC); [2014] 3 All SA 500 (WCC) (28 May 2014)
The court held that the Companies Act 71 of 2008 does not contain an express or necessarily implied term preserving creditors’ rights against sureties in business rescue proceedings. The general principles of suretyship apply: if the principal debt is discharged by compromise or release, the surety is discharged unless the suretyship or the business rescue plan expressly preserves the claim against the surety. In this case, the business rescue plan provided for the payment of a dividend to concurrent creditors in full and final settlement of their claims against the company, with no provision…
Source excerpt
- Business Rescue
- Suretyship Liability
- Companies Act 2008
- Compromise With Creditors
- Release Of Debt
- Accessory Liability