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Piercing the Corporate Veil in terms of the Companies Act 71 of 2008
Dissertation (MSc (Corporate Law))--University of Pretoria, 2023.
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| Format: | Thesis |
| Language: | English |
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University of Pretoria
2024
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| _version_ | 1867613469086318592 |
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| access_status_str | Open Access |
| author2 | Swart, Christiaan |
| author_browse | Swart, Christiaan |
| author_facet | Swart, Christiaan |
| collection | Thesis |
| dc_rights_str_mv | © 2023 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria. |
| description | Dissertation (MSc (Corporate Law))--University of Pretoria, 2023. |
| format | Thesis |
| id | oai:repository.up.ac.za:2263/94862 |
| institution | University of Pretoria (South Africa) |
| language | English |
| last_indexed | 2026-06-10T12:36:38.421Z |
| license_str | Other — see source repository |
| provenance_str_mv | Harvested via OAI-PMH from UPSpace — University of Pretoria Institutional Repository |
| publishDate | 2024 |
| publishDateRange | 2024 |
| publishDateSort | 2024 |
| publisher | University of Pretoria |
| publisherStr | University of Pretoria |
| record_format | dspace |
| source_str | UPSpace — University of Pretoria Institutional Repository |
| spelling | oai:repository.up.ac.za:2263/94862 Piercing the Corporate Veil in terms of the Companies Act 71 of 2008 Swart, Christiaan u22887173@tuks.co.za Mgwenya, Nthabiseng UCTD Piercing Doctrine Unconscionable abuse Corporate Veil Disregard Dissertation (MSc (Corporate Law))--University of Pretoria, 2023. There are exceptional circumstances in which a court may pierce or lift the corporate veil to impose personal liability on its shareholders or directors. This power was originally developed in terms of the common law and upon the enactment of the Companies Act 71 of 2008, it was included as a statutory power and has led to instances where the legal personality of a company can be ignored. Section 20(9) of the Companies Act 71 of 2008 states that “a court can declare that a company is to be deemed not to be a juristic person in respect of any obligation of the company or of a shareholder of the company”. For the court to declare a company as not having legal personality, an interested party must file an application, or it can occur during any legal proceedings in which the company is a party. If the court finds that a company's formation, utilisation for any purpose, or any action taken on its behalf involves an unfair exploitation of its separate legal identity, the company may be deemed not to be a juristic person. However, the terms “interested person”, “abuse” and “unconscionable abuse” are not defined. The concept “unconscionable injustice” was first used in the Botha v Van Niekerk case where it was stated that personal liability could only be justified if it is clear that a third party has suffered “unconscionable injustice” because of the unjust actions of the liable party8 and was expressly dissented from the Cape Pacific Ltd case. In the Cape Pacific Ltd case, the court criticised the stringent criteria applied inthe Botha v van Niekerk case and recommended adopting a more flexible approach. This approach would consider the unique circumstances of each case to decide whether disregarding the corporate entity should be considered or not. NRF Mercantile Law LLM (Corporate Law) Unrestricted Faculty of Laws SDG-16:Peace,justice and strong institutions 2024-02-22T14:05:24Z 2024-02-22T14:05:24Z 2024-05-15 2023 Dissertation * A2024 http://hdl.handle.net/2263/94862 https://library.up.ac.za/c.php?g=356288p=6340909 en © 2023 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria. application/pdf University of Pretoria |
| spellingShingle | UCTD Piercing Doctrine Unconscionable abuse Corporate Veil Disregard Piercing the Corporate Veil in terms of the Companies Act 71 of 2008 |
| title | Piercing the Corporate Veil in terms of the Companies Act 71 of 2008 |
| title_full | Piercing the Corporate Veil in terms of the Companies Act 71 of 2008 |
| title_fullStr | Piercing the Corporate Veil in terms of the Companies Act 71 of 2008 |
| title_full_unstemmed | Piercing the Corporate Veil in terms of the Companies Act 71 of 2008 |
| title_short | Piercing the Corporate Veil in terms of the Companies Act 71 of 2008 |
| title_sort | piercing the corporate veil in terms of the companies act 71 of 2008 |
| topic | UCTD Piercing Doctrine Unconscionable abuse Corporate Veil Disregard |
| url | http://hdl.handle.net/2263/94862 https://library.up.ac.za/c.php?g=356288p=6340909 |