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Die vervreemding van die maatskappy se bates en onderneming ingevolge Artikel 228 van die Maatskappywet 61 van 1973
English title of thesis: Alienation of company assets and the enterprise in accordance with article 228 of the Companies Act 61 of 1973.
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| Format: | Thesis |
| Language: | Afrikaans |
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Stellenbosch : Stellenbosch University
2012
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| _version_ | 1867614122044030976 |
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| access_status_str | Open Access |
| author | Friedman, Dean |
| author2 | Van Wyk, A. H. |
| author_browse | Friedman, Dean Van Wyk, A. H. |
| author_facet | Van Wyk, A. H. Friedman, Dean |
| author_sort | Friedman, Dean |
| collection | Thesis |
| dc_rights_str_mv | Stellenbosch University |
| description | English title of thesis: Alienation of company assets and the enterprise in accordance with article 228 of the Companies Act 61 of 1973. |
| format | Thesis |
| id | oai:scholar.sun.ac.za:10019.1/57796 |
| institution | Stellenbosch University (South Africa) |
| language | Afrikaans |
| last_indexed | 2026-06-10T12:47:00.921Z |
| license_str | Other — see source repository |
| provenance_str_mv | Harvested via OAI-PMH from SUNScholar — Stellenbosch University Repository |
| publishDate | 2012 |
| publishDateRange | 2012 |
| publishDateSort | 2012 |
| publisher | Stellenbosch : Stellenbosch University |
| publisherStr | Stellenbosch : Stellenbosch University |
| record_format | dspace |
| source_str | SUNScholar — Stellenbosch University Repository |
| spelling | oai:scholar.sun.ac.za:10019.1/57796 Die vervreemding van die maatskappy se bates en onderneming ingevolge Artikel 228 van die Maatskappywet 61 van 1973 Friedman, Dean Van Wyk, A. H. Stellenbosch University. Faculty of Law. Dept. of Mercantile Law. Corporation law -- South Africa Stockholders -- Legal status, laws, etc. -- South Africa Dissertations -- Law English title of thesis: Alienation of company assets and the enterprise in accordance with article 228 of the Companies Act 61 of 1973. Thesis (LLM) -- University of Stellenbosch, 1992. In terms of section 228 of the Companies Act 61 of 1973 the disposal of substantially the whole or greater part of a company's assets and underlying business may not be effected without shareholder approval. The minimum requirement is an ordinary resolution. Informal approval by unanimous assent is also possible. The rule was introduced to comply with demands from the business community and has no counterpart in English company legislation. Section 228 has as its main purpose the protection of the shareholders' economic interest in the company's assets and underlying business against abuse of the directors' managerial powers. Shareholders and directors act in terms of their original powers of management when disposing of the company's assets and business. In spite of some difficulty in ascertaining the meaning of "disposal" for the purpose of section 228, it appears to consist of three elements, namely an act of management, the transfer of all or some of the property rights vested in the company, and a resultant negative implication for the shareholders' interests in the company's assets. Problems relating to what constitutes substantially all or the greater part of the company's assets and business remain unresolved in South African case law and will have to be addressed by the legislature. The American practice whereby a distinction is drawn between disposals in the ordinary course of the company's business and disposals not in the ordinary course of business provides a more acceptable result. Section 228 operates in two distinct spheres of company law, namely in relations created around the company as such and relations existing in and around a group of companies. With regard to the former, third parties are protected against ultra vires disposals, but few cogent arguments can be advanced in the context of section 228 to support the applicability of the Turquand Rule and estoppel to protect third parties against the internal managerial character of shareholder approval. Shareholders’ statutory and common law remedies against abuse from directors and majority shareholders when disposing of the company's assets are evidently not sufficient. They will thus have to be supplemented by legislation. Regarding relationships in the context of a group of companies, the degree to which the group may be regarded as constituting an economic entity creates difficulties relating to the identity of the relevant approving party in intra- and inter-group disposals. The use of section 228 as an integral element of a takeover scheme need attention from the legislature since the historical, economic and legal context of section 228 leaves it unsuited as an instrument to effect takeovers. It is submitted that, in the absence of sufficient statutory and common law protection for the interests of persons affected by section 228, the section has become obsolete and unacceptable in its present form. The section should thus be amended to cope with modern trends in company law and current views on shareholders' interests in the assets and business of companies should be reconsidered to secure a more realistic approach towards disposals of a company’s assets. Masters 2012-08-27T11:38:39Z 2012-08-27T11:38:39Z 1992 Thesis http://hdl.handle.net/10019.1/57796 af Stellenbosch University 163 pages application/pdf Stellenbosch : Stellenbosch University |
| spellingShingle | Corporation law -- South Africa Stockholders -- Legal status, laws, etc. -- South Africa Dissertations -- Law Friedman, Dean Die vervreemding van die maatskappy se bates en onderneming ingevolge Artikel 228 van die Maatskappywet 61 van 1973 |
| title | Die vervreemding van die maatskappy se bates en onderneming ingevolge Artikel 228 van die Maatskappywet 61 van 1973 |
| title_full | Die vervreemding van die maatskappy se bates en onderneming ingevolge Artikel 228 van die Maatskappywet 61 van 1973 |
| title_fullStr | Die vervreemding van die maatskappy se bates en onderneming ingevolge Artikel 228 van die Maatskappywet 61 van 1973 |
| title_full_unstemmed | Die vervreemding van die maatskappy se bates en onderneming ingevolge Artikel 228 van die Maatskappywet 61 van 1973 |
| title_short | Die vervreemding van die maatskappy se bates en onderneming ingevolge Artikel 228 van die Maatskappywet 61 van 1973 |
| title_sort | die vervreemding van die maatskappy se bates en onderneming ingevolge artikel 228 van die maatskappywet 61 van 1973 |
| topic | Corporation law -- South Africa Stockholders -- Legal status, laws, etc. -- South Africa Dissertations -- Law |
| url | http://hdl.handle.net/10019.1/57796 |
| work_keys_str_mv | AT friedmandean dievervreemdingvandiemaatskappysebatesenondernemingingevolgeartikel228vandiemaatskappywet61van1973 |