SCA to decide on Bosasa liquidation saga
The future of corruption-accused facilities management and security company Bosasa is set to be decided by the SCA after liquidators appointed to wind up the firm, now named African Global Operations, and its subsidiaries have taken their fight to keep the Krugersdorp group under liquidation to the SCA in Bloemfontein.
A News24 report notes Ralph Lutchman, Tania Oosthuizen and Cloete Murray were appointed as the liquidators of Bosasa and 14 of its subsidiaries in February this year.
Bosasa's board of directors, led by the late Gavin Watson, filed an urgent High Court application in March seeking to have the resolutions adopted by the board declared null and void.
Bosasa's board, represented by Advocate Mike Hellens SC, further argued before the High Court that Bosasa was solvent – the only issue being a notice served by the banks informing Bosasa Operations, the main holding company, of their intention to close the company's bank accounts.
In addition – the Bosasa board contended – Murray and the other liquidator's appointment should be set aside, because they were appointed by the Master of the High Court in Pretoria, while Bosasa fell under the jurisdiction of the Johannesburg Master.
It was the notice from the banks that directly led to the decision by the board, which was being advised by an unknown liquidation attorney, to place Bosasa and its subsidiaries under voluntary liquidation.
The liquidators attempted to counter these arguments by introducing two liquidator's reports, contending and setting out reasons why Bosasa was, in fact, insolvent.
But the High Court refused to consider these reports on a technicality, with Acting Judge Joolam Ameer ruling in the Bosasa board's favour earlier this year, setting aside the liquidation.
News24 notes the liquidators filed for leave to appeal Ameer's judgment, and further applied for an expedited hearing date in the SCA.
According to the heads of arguments filed by both parties, the issues remain largely similar to what was argued before the High Court.
Article disclaimer: While we have made every effort to ensure the accuracy of this article, it is not intended to provide final legal advice as facts and situations will differ from case to case, and therefore specific legal advice should be sought with a lawyer.
