Thomson & De Kock Construction Company (Pty) Ltd v Terblanche NO and Others (12870/19)
Thomson & De Kock Construction Company (Pty) Ltd v Terblanche NO and Others (12870/19) [2020] ZAWCHC 55 (19 May 2020)
The court found that the liquidators, having disposed of the only asset of the insolvent company to Slipknot without securing payment and in the face of a known dispute regarding creditor preference, acted imprudently and grossly negligently. The confirmed liquidation and distribution account, which awarded the applicant a dividend, was not shown to be incorrect or prepared in error, and the liquidators failed to establish any grounds for reopening the account. The applicant is entitled to payment in terms of the confirmed account, and the liquidators are personally liable for the amount due,…
Source excerpt
- Liquidation And Distribution Account
- Creditor Preference
- Personal Liability Of Liquidators
- Section 387 4 Companies Act
- Reopening Confirmed Account