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Hunkydory

9 July 2009

Standard Bank of South Africa Ltd v Hunkydory Investments 188 (Pty) Ltd and Others (15427/08) [2009] ZAWCHC 81 (1 June 2009)

Section 228 of the Companies Act 61 of 1973 determines that directors of a company may not dispose of the whole or the greater part of the company's assets or undertaking unless the shareholders authorized the disposal by way of a special resolution. The Court in this matter had to decide whether 'dispose' includes the registering of a mortgage bond over property of a company and is a must-read for all practitioners who have corporate clients.

The judgment also touches on the constitutionality of the National Credit Act's exclusion of entities from its protection.

Judgment and a summary on Igqwetha Training Academy

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