Now Creditors Can Apply for Directors to be Declared Delinquent – Why is That Important?

“He who is quick to borrow is slow to pay” (Old proverb) A recent High Court decision means that, for the first time, creditors of debtor companies are specifically cleared to apply for the company’s directors to be declared “delinquent” in certain circumstances. And that has significant implications for both directors and creditors. For directors…

Directors, Creditors – Do Personal Suretyships Survive Business Rescue?

“Creditors have better memories than debtors” (Benjamin Franklin) In these hard times of pandemic and economically destructive unrest, an unfortunate number of businesses face collapse, and many will opt for the “first aid for companies” option of business rescue.    Creditors coming out of that process with a shortfall (only the luckiest creditors are likely…

When Company Directors and Shareholders Come to Blows….

“…the mere exercise of majority shareholding voting rights does not amount to oppression…” (extract from judgment below) What happens when a company’s directors and shareholders fall out and cannot reconcile their differences?  “Relief from oppressive or prejudicial conduct” If you should find yourself in such an unfortunate situation, our Companies Act offers you several possible…