Gore N.O. and Others v Shaff and Others (15766/13)
Gore N.O. and Others v Shaff and Others (15766/13) [2013] ZAWCHC 186 (13 December 2013)
The court held that the liquidators' advance payment to ABSA Bank Ltd was made in accordance with established insolvency practice and was not ultra vires or unlawful. Section 409 of the Companies Act does not prohibit such payments to secured creditors whose claims have been proved, provided the liquidator acts responsibly and at his own risk. The practice is justified by the need to limit interest accrual to the prejudice of other creditors. Mrs Wolpe failed to demonstrate any actual prejudice or entitlement to the interim relief sought, nor did she establish that the liquidators acted unrea…
Source excerpt
- Liquidation And Distribution Account
- Secured Creditor Rights
- Advance Payments In Liquidation
- Ultra Vires Liquidator Actions
- Collusive Transaction
- Standing To Apply