Legal Articles and Guides
Debt counselling, implemented as an alternative to sequestration for indebted consumers, is a ‘disaster’ for many consumers, according to practitioners. Rapport notes that the issue of customers wanting to abandon the debt review process has become more complicated with the Western Cape and Gauteng High Courts at odds on the matter.
Liquidators of the Pamodzi Group of Companies have approached the KZN High Court (Durban) seeking a sequestration order against President Jacob Zuma’s controversial nephew, Khulubuse, over a R1.5bn debt, according to a Sunday Tribune report. The move comes after Zuma allegedly failed to honour the payment agreement and hid some assets when the agreement was signed last year.
Bad things occur to decent people. It is imperative to comprehend at what time it is worth still fighting, and when it is time to make a new start. In life we walk around with a misconstrued discernment and baggage that we carry along with us. We contemplate that we warrant to ache for the rest of our lives. For example, where people in the position of losing their property or about to lose their property and is still left with a deficit.
Insolvency refers to a position of reduced legal capacity forced by the courts on persons or companies who are incapable to pay their arrears, whose debts surpass their assets. Insolvency is broken down in two separate categories, namely liquidation and sequestration. Liquidation is the process which applies to businesses or entities, with the exception of sole proprietors and Sequestration is the process for persons or individuals.
The cash-strapped, Gupta-owned Oakbay Resources & Energy’s woes have escalated with news that the Industrial Development Corporation (IDC) is suing it for its failure to meet a demand to pay R293m by yesterday. A BusinessLIVE report says the claim arises from the alleged unlawful manipulation of the Oakbay share price ahead of the company’s listing on the JSE in November 2014.
Former Mthatha Judge Duncan Dukada’s widow Hlombekazi Dukada will get half of most of the assets accumulated during their 40-year marriage despite their holding separate estates in terms of their marriage property regime, notes a Saturday Dispatch report. The Eastern Cape High Court (Mthatha) ruled that Dukada and his wife had formed a tacit partnership agreement during 1990 in respect of their family businesses and that they had conducted their growing empire – which included hardware stores, a bookshop, tiling and supermarket franchises – as equal partners until the death of Dukada last year.
President Jacob Zuma’s nephew Khulubuse Zuma has taken no steps yet to oppose an application for his provisional sequestration for about R1.52bn owed to Pamodzi Gold companies although this could open up a full investigation of his financial affairs for the past eight years, says a Business Day report.
The advertising partner for Western Province Rugby (WPR) has laid criminal charges against it, after directors and its chief executive failed to provide the liquidated company’s ‘statement of affairs’ to the Master of the High Court, as required by the Companies Act of 1973.
Liquidators of the Pamodzi mines have applied for the sequestration of Khulubuse Zuma, nephew of the President, after he failed to meet a debt repayments schedule. Rapport notes that Khulubuse Zuma is supposed to repay debt in instalments of R500 000 a month.
In what a Pretoria News calls a ‘scathing’ attack on the Law Society of the Northern Provinces regarding its failure to act against its former president Ronald Bobroff and his son Darren Bobroff for close to five years, two judges last week ruled that the society had to foot the legal Bill for some of the applications brought before court.
The businessman accused of colluding with Mercantile Bank in alleged illegal asset stripping worth hundreds of millions of rand said he will ‘vigorously defend this action’ as he believes the case ‘is based on unfounded allegations’, says a Fin24 report. Alert Steel is seeking damages of R351m allegedly caused by businessman Rayhaan Hassim, his company West Lake Trade and Investments, and Mercantile Bank following what it believes was an illegal liquidation process in 2014.
Mercantile Bank has been taken to court over allegations it conspired with an alleged fraudster in illegal asset stripping worth hundreds of millions of rands. A Fin24 report says the litigation could not have come at a worse time, as the Portuguese-owned and SA-based bank is up for sale. Alert Steel is seeking damages of R351m caused by alleged ‘mastermind’ Rayhaan Hassim, Mercantile Bank and West Lake Trade and Investments following what it believes was an illegal liquidation process in 2014.
Cash-strapped state-owned airline SA Express is facing an application for liquidation because it cannot pay its debts, says a BusinessLIVE report. The application has been brought in the Gauteng High Court by aircraft leasing company Solenta Aviation on the basis of the non-payment of R87.3m and will be heard on 11 August if it is not opposed. But SA Express acting CEO Victor Xaba said the airline did intend to oppose the application because of a dispute over the amount owed.
The Gupta-owned company Optimum Coal Mine has issued a summons for R10m against a small company. Optimum alleges Re-Action Consulting, which builds public health clinics, has published false and defamatory statements in court papers, says a GroundUp report. Re-Action is litigating to get Optimum wound up for being unable to pay its debts.
Changes to the legal framework and regulation of business rescue, particularly to registration of practitioners, will take effect as from 1 October 2017, says a Fin24 report. Business rescue came into effect via the Companies Act in 2011. ‘Although relatively successful, business rescue has received criticism resulting from apparent flaws in the appointment process and quality of business rescue practitioners.