Nedbank Limited v Spannenberg and Another (5434/2011)
Nedbank Limited v Spannenberg and Another (5434/2011) [2014] ZAWCHC 50 (3 April 2014)
The court found that Airoad Express, by inflating the First Defendant's salary and facilitating the medium term loan, provided financial assistance for the purchase of its shares, contravening section 38 of the Companies Act. The Plaintiff, Nedbank, was aware of the purpose and the company's involvement. The medium term loan and the related home loan and mortgage agreements were inextricably linked and could not be severed from the prohibited transaction. As such, these agreements are void and unenforceable. Only the amounts admitted by the Defendants as benefits received for purposes other t…
Source excerpt
- Financial Assistance For Share Acquisition
- Section 38 Companies Act
- Mortgage Bond Enforceability
- Severability Of Contracts