Legh v Nungu Trading 353 (Pty) Ltd and Another (3/07)
Legh v Nungu Trading 353 (Pty) Ltd and Another (3/07) [2007] ZASCA 122; [2007] SCA 122 (RSA) ; 2008 (2) SA 1 (SCA) ; (27 September 2007)
Section 20(1)(c) of the Insolvency Act does not apply to companies in winding up by virtue of section 339 of the Companies Act, as the legislative scheme of the Companies Act provides its own mechanisms for asset custody, control, and distribution. The property of a company in liquidation remains vested in the company, not in the liquidator, and the statutory purpose of winding up would be undermined if the sole asset were transferred to a third party outside the liquidation process. The declaratory order permitting transfer of the company's sole asset to Nungu Trading was legally unsustainab…
Source excerpt
- Winding Up Of Companies
- Application Of Insolvency Act
- Stay Of Execution
- Transfer Of Property On Winding Up
- Creditor Rights