Alderbaran (Pty) Ltd and Another v Bouwer and Others (19992/2017)
Alderbaran (Pty) Ltd and Another v Bouwer and Others (19992/2017) [2018] ZAWCHC 38; [2018] 3 All SA 71 (WCC); 2018 (5) SA 215 (WCC) (22 March 2018)
The court found that the first resolution to commence business rescue was procedurally defective, lacking a sworn statement and proper notice to affected persons as required by the Companies Act. The timing and conduct of the applicants indicated an abuse of the business rescue process, motivated by a desire to prevent enforcement of a valid judgment rather than genuine financial distress or prospects of rescue. The second resolution was a nullity, as business rescue initiated by the first resolution remained operative until set aside by the court. The court held that it was just and equitabl…
Source excerpt
- Business Rescue
- Sale In Execution
- Section 129 Companies Act
- Section 130 Companies Act
- Enforcement Action
- Good Faith Requirement