Creditors cannot sue company directors, SCA rules
The Supreme Court of Appeal’s decision sets the precedent for how litigants must conduct their cases against companies
25 April 2024 - 15:51
After claiming that a R41m debt owed to the Revenue Service (Sars) was as a result of a clearing company directors’ “reckless” or “negligent” conduct, a chemical company has been allowed to “amend” its court papers so the matter can continue.
In a landmark judgment on Wednesday, the Supreme Court of Appeal (SCA) said creditors could not sue directors of a company directly. Instead, companies themselves should be the focus of the claim, not directors in their individual capacities. ..
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