Indo Zambia Bank Limited v Entrust Stockfeeds Limited (2023/HPC/0635)
Indo Zambia Bank Limited v Entrust Stockfeeds Limited (2023/HPC/0635) [2024] ZMHC 305 (19 July 2024)
The respondent's board did not have a reasonable basis to believe the company was financially distressed within the statutory meaning, as the evidence showed the company was already insolvent. There was also no contemporaneous evidence of reasonable prospects for rescue at the time of the resolution. The procedural requirements of section 21(1) of the Corporate Insolvency Act, 2017 were not met. The special resolution and business rescue proceedings are therefore invalid and set aside under section 22(1)(a) of the Act.
Source excerpt
- Business rescue proceedings
- Liquidation
- Special resolutions
- Financial distress
- Jurisdiction
- Statutory interpretation