Legal Articles and Guides
Liquidator entitled to property under SARS control
SARS cannot prevent a liquidator from taking possession of property by virtue of the fact that the duty and VAT of the property has not been paid, says Virusha Subban, Claire van Zuylen and Yue Li, of Bowmans, in an analysis on the Polity site. They examine the recent SCA judgment in CSARS v Van der Merwe NO, where it was held that a liquidator is entitled to take the possession of the property in terms of the Insolvency Act, even though the duty and VAT of the property has not been paid to SARS.
When Can You Use a Liquidation Application to Collect Debt?
When you are struggling to recover your money from a recalcitrant debtor company, applying for its liquidation can be a very powerful collection tool. Suddenly the directors are faced with the imminent prospect of completely losing control of their company, its business and its assets to a liquidator. If the directors are just fighting a rearguard action to delay paying you, a liquidation (or “winding-up”) application should immediately focus their minds on finding a way to settle the debt.
Alleged bogus lawyer accused of forgery
An allegedly bogus lawyer has been accused of forgery as he attempts to hang onto his houses and cars, avoid sequestration and save his career, says a Sunday Times report. Patel Muhamed, also known as Mohamed Ismail Patel, said in court papers his wife, Fatima, had ‘received her Islamic divorce (from me) according to Sharia law’ through the Majlisush Shura al Islami council in Cape Town.
Couple ordered to repay R43m
Entrepreneur and pastor Lonwabo Mahlati is R43m down on his fortune after the Eastern Cape High Court (East London) granted summary judgment against him. Judge John Smith said there seemed little doubt that Mahlati and his wife had misappropriated the money from the business’ liquidation account.
Western Province Rugby decision to be appealed
Embattled Western Province Rugby (Pty) Ltd was finally liquidated in the Western Cape High Court on 20 December… but the commercial partner in a major dispute with them has vowed that ‘the fight won’t end here’, notes a Sport24 report. Judge Dennis Davis, on behalf of Judge Ashley Binns-Ward, gave the final liquidation ruling after Binns-Ward reserved judgment. It was ordered that WP Rugby (Pty) Ltd – the business wing of the WP Rugby Union – not proceed with any contracts and that the company’s property be sold by public auction, public tender or private contract.
Race quotas ruled unlawful by SCA
The SCA has found a racial quota policy implemented for the appointment of liquidators to be unlawful and invalid. It ruled on Friday that an appeal against a finding of its unconstitutionality be ‘dismissed with costs,’ upholding the High Court’s finding of the policy as ‘unconstitutional and irrational’ as well as ‘unlawful and invalid’, notes a News24 report.
A ray of hope for hopelessly indebted
What comfort does our law offer to a massively over-indebted person without a job or assets? None, according to Paul Esselaar, consumer law attorney and owner of Esselaar Attorneys. In an article on the Legalbrief Today site he examines the three tools available to over-indebted people: administration orders, debt review and sequestration.
Western Province Rugby accused of fake bankruptcy
Allegations that Western Province Rugby (WPR) faked bankruptcy for ulterior motives have emerged in an urgent application at the Western Cape High Court which one of its partners lodged last week, says a Weekend Argus report. WPR was provisionally wound up a week ago amid claims that it suffered an operating loss of more than R12m in the 2015 financial year, that its overdraft facility with its bank was as high as R19m and that it was left without funds to cover operating expenses.
End of the road for Beyers Realty Group
Western Cape High Court Judge Robert Henney yesterday granted a final order for the liquidation of the Beyers Realty Group after millions disappeared from the company’s trust account. A Cape Times report says the company had been placed in provisional liquidation on 4 October. Both Beyers Swanepoel-Trollip and his husband and business partner, Lenard Swanepoel-Trollip, who were 50/50 partners in the real estate firm, have absconded and are believed to be in Australia with their 11-month-old daughter.
Gupta mine faces liquidation application
The Gupta family may lose its recently-acquired Optimum Coal Mine. An eNCA report says multinational company Barloworld Equipment is threatening the mine with liquidation, claiming it is owed money for goods and services. A statement issued by Barloworld Equipment confirms that it has applied to a High Court for the liquidation of Optimum Coal Mine, which the Gupta family recently purchased.
Aurora sequestration proceedings get court go-ahead
The Gauteng High Court (Pretoria) has ordered that sequestration proceedings begin against the former directors of Aurora Empowerment systems for mismanagement of Pamodzi Gold mines, says a BDlive report. The decision brings some closure to thousands of mineworkers who lost their jobs, trade union Solidarity said. A deal had also been reached with Khulubuse Zuma for the payment of R23m in damages to the Pamodzi and Aurora liquidators, the union said.
Directors and personal liability: the little-known section waiting in ambush
Since the “new” 2008 Companies Act came into effect in 2011, directors and other company officers have had to shoulder a raft of additional responsibilities and risks, amongst them a significantly increased risk of personal liability. Consider for example the little-known section 218(2) which waits in ambush for the unwary in the “Miscellaneous Matters” section at the tail-end of the Act.
Megatron announcement ‘null and void’ lawyers
Lawyers for a creditor owed €1.3m (R19.6m) by Ellies subsidiary Megatron claim Friday"s voluntary business rescue announcement released via Sens was "null and void", says a BDlive report. Law firm Hogan Lovells " acting on behalf of creditor Ormazabal International Business " said its High Court application on 19 July to have Megatron placed into business rescue or under liquidation had priority.
Lifeline after liquidation for EP Rugby Union
The professional arm of the union‚ EP Rugby (Pty) Ltd‚ went into liquidation after months of financial strife in the Eastern Cape High Court (Port Elizabeth) yesterday. A Sport24 report says the cash-strapped EPRU was placed under provisional liquidation on 10 March after failing to resolve its ongoing financial problems, which has seen the union unable to pay players" salaries.
Entire Land Amendment Act declared invalid
In a judgment that damned Parliament for its failure to facilitate public participation in its legislative process, the Constitutional Court yesterday (Thursday) declared invalid in its entirety the Restitution of Land Rights Amendment Act, notes Daily News. ‘The NCOP public participation process was unreasonable and thus constitutionally invalid‚’ Judge Mbuyiseli Madlanga found in a unanimous judgment. According to a TimesLIVE report, the court pointed out that provinces gave out notices just days before hearings‚ which were held only in certain municipalities and excluded many of those affected.
