I previously wrote an article dealing with the rights of shareholders to convene shareholders’ meetings (See WHEN DIRECTORS PARALYSE A COMPANY – DIRECTORS’ ABILITY TO PREVENT THE CONVENING OF SHAREHOLDERS’ MEETINGS By Don Mahon)
This morning, I received the following judgment in our favour from the Supreme Court of Appeal which deals with the issue:
In the recent decision of Tuning Fork (Pty) Ltd v Greeff, the Western Cape High Court has found that, where a principal debt is compromised in terms of an approved business rescue plan, a surety in respect of whom such principal debt was accessory, is released unless the suretyship provides otherwise.
A copy of the Judgment of Rogers J can be downloaded here:
South African Commercial Law Blog 