Matarapro (PTY) Ltd v Mashala Resources (PTY) Ltd (20243/21)
Matarapro (PTY) Ltd v Mashala Resources (PTY) Ltd (20243/21) [2022] ZAGPJHC 664 (8 September 2022)
The court found that the compensation agreement was concluded while the Respondent was under business rescue and was not approved by the business rescue practitioners, rendering it void under Section 137(4) of the Companies Act. The signatory to the agreement lacked authority, and subsequent attempts to ratify the agreement failed as the BRPs did not sign the ratification agreement. The Applicant was aware of the lack of approval. As a result, the Applicant sought to enforce a void agreement, and the Respondent's indebtedness was not established. Therefore, the application for provisional liq…
Source excerpt
- Provisional Liquidation
- Business Rescue
- Void Agreement
- Director Authority
- Section 137 Companies Act