Motor Industry Bargaining Council v Botha and Another (34198/2013)
Motor Industry Bargaining Council v Botha and Another (34198/2013) [2016] ZAGPPHC 615 (10 June 2016)
The court found that the defendants, as directors, failed to pay statutory deductions to the plaintiff as required by collective agreements and the Labour Relations Act. Their explanations for non-payment were contradictory and unconvincing, and evidence showed a deliberate intention not to pay creditors, including the plaintiff. The directors misrepresented deductions on payslips and used the funds to expand the business, acting with gross negligence and intent to defraud. The court held that section 424 of the repealed Companies Act continued to apply to the winding-up and liquidation of pr…
Source excerpt
- Reckless Trading
- Director Liability
- Statutory Deductions
- Personal Liability
- Collective Agreements