Bosasa goes bust as court rules business is commercially insolvent

  • 📰 TimesLIVE
  • ⏱ Reading Time:
  • 59 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 27%
  • Publisher: 59%

Malaysia News News

Corruption accused company African Global Operations, formerly Bosasa, is commercially insolvent and should remain in the hands of its liquidators, says the Supreme Court of Appeal (SCA).

The company successfully resorted to the Gauteng high court where acting judge Goolam Ameer agreed that its resolutions to voluntarily wind up the company were null and void as the company was notinsolvent at the time of the decision. He ordered the liquidators to restore control of the company to the directors.

In doing so, Wallis said, Ameer had ignored a damning report dealing with the company’s financial position which had included the audited annual financial statements for the year ending February 2017 signed by then directors Joe Gumede and Gavin Watson. It indicated the company incurred a net loss of more than R40m and its total liabilities exceeded its total assets by more than R173m.

“Had the judge had any regard to that document it is difficult to see on what basis he could have accepted at face value Mr Gumede’s statement that the companies were all solvent,” said Wallis. Wallis was just as scathing about judge Ameer’s decision to grant a cost order against the liquidators in their personal capacities. He said there had never been any complaint that Murray was acting improperly or outside the scope of his powers as liquidator, or that he and the other liquidators were acting against the interest of the companies, their shareholders or creditors. There was no grounds whatsoever justifying the punitive cost order.

“The grounds relied on by the judge were based on speculation and insinuations that verged on the defamatory.”

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 28. in MY

Malaysia Malaysia Latest News, Malaysia Malaysia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

SAA to announce next step after Solidarity’s application for business rescueThe union confirmed it had served court papers on SAA and Public Enterprises Minister Pravin Gordhan, asking the High Court in Johannesburg to give the go-ahead for business rescue. boycottSAA
Source: ewnupdates - 🏆 30. / 53 Read more »

Solidarity goes to court to have SAA placed under business rescue'Business rescue offers an opportunity to make an emergency landing instead of aiming for disaster.'
Source: TimesLIVE - 🏆 28. / 59 Read more »