Mind The Time Limits | Liquidation Processes

The Supreme Court of Appeal recently considered the matter of Botha NO and Others v Jonker and Others (1003 / 2022) [2024] ZASCA 78.

The appeal concerned the consequences of a failure to obtain the consent of the Master to summon a meeting of creditors after the expiry of the period of one month as prescribed in s 78(1) of the Close Corporations Act, 69 of 1984 (the Close Corporations Act).

The Court also provided a guideline regarding some of the differences in the administration of the liquidated estate in the case of a Closed Corporation versus a company.

The Land and Agricultural Bank of South Africa (the Land Bank) issued an urgent application to set aside a resolution adopted by Jonker Products to place it in business and by implication Jonker Products was placed under provisional liquidation on 11 September 2020. The liquidators were appointed as such on 21 October 2020.