Sonnenberg Mcloughlin Inc v Spiro (7277/2001)
Sonnenberg Mcloughlin Inc v Spiro (7277/2001) [2003] ZAWCHC 20; 2004 (1) SA 90 (C) (30 May 2003)
The applicant failed to establish, on a balance of probabilities, the existence of any agreement binding the respondent to pay a proportionate share of company liabilities. The correspondence and affidavits reveal ongoing negotiations without consensus. The respondent consistently denied liability except as surety and insisted on indemnification and audited accounts before any payment. The alternative claim based on section 53(b) of the Companies Act is unsustainable, as the section does not provide the company with a right of recourse against directors for debts it has paid; it is intended t…
Source excerpt
- Director Liability
- Memorandum Of Association
- Section 53b Companies Act
- Joint And Several Liability
- Sequestration Procedure