Are the rights of business employees preferred more than the rights of comestic employees?

Abstract

This case note examines, inter alia, the effect of a sequestration order on the debtor and relevant stakeholders such as creditors, shareholders and other interested parties (see s 20 read with s 9, 10, 11, 12, 17, 19, 21, 23, 37 and 38 of the Insolvency Act 24 of 1936 (hereinafter "the Insolvency Act"). The case note further discusses certain requirements for the application of a sequestration order in South Africa (s 9, read with s 10-12 of the Insolvency Act) in light of the judgment in Gungudoo v Hannover Reinsurance Group Africa ((585/11) [2012] ZASCA 83 (30 May 2012) (hereinafter "Gungudoo case"). This case raised some pertinent questions regarding the application and serving of a sequestration order on the debtor, in terms of the Insolvency Act (s 9(4A), 11(2A) and 11(4)).