Winding-up of company

 

In FirstRand Bank Ltd (“FirstRand”) v Lodhi 5 Properties Investment CC (“Lodhi”) 2013 (3) SA 212 (GNP) the court held that there is no indication in the 2008 Act that the legislature intended, particularly as it left s 345 of the 1973 intact, to do away with the principle that a company (or close corporation) may be liquidated on the grounds of its ‘commercial insolvency.’

For clarity sake, it is mentioned that section 345(1) of the 1973 Act provides that a company will be deemed unable to pay its debts in a number of circumstances, including if a creditor to whom the company is indebted in a sum over R 100 has served on the company a demand to pay the sum so due; or where a company on which a demand to pay a debt has been served has failed to pay the debt within three weeks; or where a sheriff has issued a nulla bona return; or if it is proved to the satisfaction of the court that the company is unable to pay its debts.