Judgment in our favour received this morning from the Supreme Court of Appeal

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:

Butler v Van Zyl (554-13) [2014] ZASCA 81 (30 May 2014)

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Approval of a Business Rescue Plan in respect of a Principal Debt releases the Surety unless the Suretyship states otherwise

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:

Tuning Fork v Greeff