Some thoughts on the Meaning and Application of Commercial Insolvency in Winding-up Proceedings Involving Contingent Creditors Absa Bank v Hammerle Group 2015 (5) SA 215 (SCA)

Abstract

The winding up of companies is dually governed by the Companies Act (71 of 2008, hereinafter “the Companies Act 2008”) and the relevant provisions of the repealed Companies Act (61 of 1973, hereinafter “the Companies Act 1973”). Thus, the winding up of solvent companies is dealt with under the Companies Act 2008 (ss 79-81) while insolvent companies are still wound up under the Companies Act 1973 (ss 337-426). Accordingly, the Companies Act 2008 does not have specific provisions that deal with the winding up of insolvent companies.