Creditor makes novel legal argument in ‘delinquent director’ case
The creditors of Somnipoint do have the legal right to apply for Somnipoint’s directors to be declared ‘delinquent’, despite the law usually preventing this
In a rare victory, a company’s creditor was given authorisation to bring an application against the company’s directors to declare them possibly unfit and personally liable, in an upcoming trial involving more than R400m from an alleged unpaid load.
The Johannesburg high court ruled the creditors of company Somnipoint do have the legal right to apply for Somnipoint’s directors to be declared “delinquent”, despite the law normally preventing this. This will now be argued at a later trial...
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