Bondholders – can your debtor delay liquidation?

Debtors faced with liquidation often ask their creditors for time to realise their assets “to best advantage” rather than by “forced sale”. But per a recent High Court decision, creditors are not obliged to wait. A property-owning company, defending itself against a liquidation application brought by the bondholder, was found to be “commercially insolvent” but nevertheless asked the Court to exercise its discretion to refuse the order “because the applicant is more than covered by abundant security in respect of its claim. Liquidation will simply result in the forced sale of assets which far exceed any claim that the applicant…
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Strike Violence – Trade Union in Trouble

“The time has come in our labour relations history that trade unions should be held accountable for the actions of their members. For too long trade unions have glibly washed their hands of the violent actions of their members.”  (Labour Court) Our Constitution provides strong protections for the right to strike, and it is thus extremely easy to go on a protected strike.  But this right is subject to the limitation that strike action must always be peaceful and unarmed. (more…)
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Minority Shareholders: Your protection from Oppression

How do you as a minority shareholder protect yourself from abuse of position by directors who were voted in by the majority shareholders?  You can’t vote them out of office, nor can you control voting at shareholder meetings. Our law comes to your rescue here, allowing any shareholder or director to apply to court for relief against any conduct by a company, its directors or other controlling officers/entities, that is “oppressive” or “unfairly prejudicial”, or that “unfairly disregards” your interests. Note that the motive for the conduct in question is irrelevant - what counts is the effect that it has…
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Owners association levies – “no benefit, no pay”?

No way! As a member of an Owners Association (“Home Owners Association” if it’s a residential property development), you have almost certainly contracted in your purchase agreement to pay all levies raised by the Association, regardless of whether or not you actually benefit from being part of the development. (more…)
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Insurance: The risk of not Reporting

Having your insurance claim repudiated is particularly galling if you’ve been meticulously paying out hefty premiums for years. But take care to comply strictly with all the terms and conditions of your policy contract - not doing so can cost you dearly. R600k down for not reporting Take for example the recent and widely-reported case of a motorist down R608 772 (plus interest and legal costs) after the High Court upheld his insurance company’s repudiation of a claim for accident damage to his Audi R8 Quattro. His mistake? He had failed to advise them of two previous accidents. (more…)
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