Full Text Available
Note: Clicking the button above will open the full text document at the original institutional repository in a new window.
The liability of directors for fraudulent and/or reckless trading: Section 424 of the Companies Act 61 of 1973
One of the chief principles of company law is that a company is a separate legal personality and that the liability of a member in a company, limited by shares, is limited to the amount, if any, unpaid on his shares. A problem down the years has been to prevent these principles being exploited by th...
Saved in:
| Main Author: | |
|---|---|
| Format: | Thesis |
| Language: | English |
| Published: |
Department of Commercial Law
2021
|
| Subjects: | |
| Tags: |
No Tags, Be the first to tag this record!
|
| _version_ | 1867613241237045248 |
|---|---|
| access_status_str | Open Access |
| author | Harper, Gregory Mark |
| author_browse | Harper, Gregory Mark |
| author_facet | Harper, Gregory Mark |
| author_sort | Harper, Gregory Mark |
| collection | Thesis |
| description | One of the chief principles of company law is that a company is a separate legal personality and that the liability of a member in a company, limited by shares, is limited to the amount, if any, unpaid on his shares. A problem down the years has been to prevent these principles being exploited by the controllers of the company, largely its directors and thereby to protect creditors of the company. Although judges have at times regarded certain companies whose misdemeanours have come under the_ spotlight as a 'cloak' and a 'sham', 1 the fact remains that a company as a separate legal personality comes into existence on the date of incorporation and that no recourse can be f6unded on the proposition that a company's misdemeanours cause it ipso facto to forfeit its existence. The most important statutory incursion into the principle of the separate personality of a company is contained in what are commonly known as the fraudulent or reckless trading provisions of the Companies Act 61 of 1973, namely s 424. This provision replaces s 185 bis (1) of the Companies Act 46 of 1926 which was derived from what is presently s 630 of the Companies Act (1985) of the United Kingdom (s 332 of the Companies Act 1948) which is still limited to fraudulent trading only. |
| format | Thesis |
| id | oai:open.uct.ac.za:11427/35357 |
| institution | University of Cape Town (South Africa) |
| language | eng |
| last_indexed | 2026-06-10T12:33:01.081Z |
| license_str | Not specified — see source repository |
| provenance_str_mv | Harvested via OAI-PMH from UCTD — University of Cape Town Open Access Repository |
| publishDate | 2021 |
| publishDateRange | 2021 |
| publishDateSort | 2021 |
| publisher | Department of Commercial Law |
| publisherStr | Department of Commercial Law |
| record_format | dspace |
| source_str | UCTD — University of Cape Town Open Access Repository |
| spelling | oai:open.uct.ac.za:11427/35357 The liability of directors for fraudulent and/or reckless trading: Section 424 of the Companies Act 61 of 1973 Harper, Gregory Mark Corporation law South Africa One of the chief principles of company law is that a company is a separate legal personality and that the liability of a member in a company, limited by shares, is limited to the amount, if any, unpaid on his shares. A problem down the years has been to prevent these principles being exploited by the controllers of the company, largely its directors and thereby to protect creditors of the company. Although judges have at times regarded certain companies whose misdemeanours have come under the_ spotlight as a 'cloak' and a 'sham', 1 the fact remains that a company as a separate legal personality comes into existence on the date of incorporation and that no recourse can be f6unded on the proposition that a company's misdemeanours cause it ipso facto to forfeit its existence. The most important statutory incursion into the principle of the separate personality of a company is contained in what are commonly known as the fraudulent or reckless trading provisions of the Companies Act 61 of 1973, namely s 424. This provision replaces s 185 bis (1) of the Companies Act 46 of 1926 which was derived from what is presently s 630 of the Companies Act (1985) of the United Kingdom (s 332 of the Companies Act 1948) which is still limited to fraudulent trading only. 2021-11-23T12:38:45Z 2021-11-23T12:38:45Z 1993 2021-11-23T12:38:23Z Master Thesis Masters LLM http://hdl.handle.net/11427/35357 eng application/pdf Department of Commercial Law Faculty of Law |
| spellingShingle | Corporation law South Africa Harper, Gregory Mark The liability of directors for fraudulent and/or reckless trading: Section 424 of the Companies Act 61 of 1973 |
| thesis_degree_str | Master's |
| title | The liability of directors for fraudulent and/or reckless trading: Section 424 of the Companies Act 61 of 1973 |
| title_full | The liability of directors for fraudulent and/or reckless trading: Section 424 of the Companies Act 61 of 1973 |
| title_fullStr | The liability of directors for fraudulent and/or reckless trading: Section 424 of the Companies Act 61 of 1973 |
| title_full_unstemmed | The liability of directors for fraudulent and/or reckless trading: Section 424 of the Companies Act 61 of 1973 |
| title_short | The liability of directors for fraudulent and/or reckless trading: Section 424 of the Companies Act 61 of 1973 |
| title_sort | liability of directors for fraudulent and or reckless trading section 424 of the companies act 61 of 1973 |
| topic | Corporation law South Africa |
| url | http://hdl.handle.net/11427/35357 |
| work_keys_str_mv | AT harpergregorymark theliabilityofdirectorsforfraudulentandorrecklesstradingsection424ofthecompaniesact61of1973 AT harpergregorymark liabilityofdirectorsforfraudulentandorrecklesstradingsection424ofthecompaniesact61of1973 |