Think twice before purchasing an asset from a company in liquidation
Except for the well-seasoned litigator, the average person may perceive the law as inaccessible. However there are times that the court hands down a judgment which sheds light on some core tenets of our legal system. The case of Chater Developments (Pty) Ltd (In Liquidation) and Waterkloof Marina Estates (Pty) Ltd is one such judgment, wherein the court deals with the notion of ultra vires, good faith and simple legislative interpretation. In this particular instance, Chater Developments had been placed into liquidation due to it being unable to satisfy or pay its debts. Initially a single liquidator was appointed to wind…