MCL5903 January February Portfolio 2024 (COMPLETE ANSWERS) - DUE 19 January 2024
MCL5903 January February Portfolio 2024 (COMPLETE ANSWERS) - DUE 19 January 2024 100% TRUSTED workings, explanations and solutions. for assistance Whats-App 0.6.7..1.7.1..1.7.3.9 .......................................
Dear [Your Name],
I hope this message finds you well. As the legal adviser for Best Bank Ltd, I have carefully
considered the matters raised in the winding-up application against Getaway Trucking
(Pty) Ltd. Here is the advice on the legal position of Best Bank Ltd regarding the issues
raised:
a. Laws Applicable to Winding-Up:
In South Africa, the winding-up of a company is governed by the Companies Act, 2008.
Section 343 of the Companies Act provides the grounds upon which a company may be
wound up by a court. These grounds include insolvency, just and equitable reasons, and
inability to pay debts. In the case of Best Bank Ltd's application against Getaway, the
relevant ground appears to be the inability to pay debts.
The 'without prejudice' letter of reply from Getaway, explicitly stating that the company will
only tender payment if there were surplus funds available for repayment of arrears,
indicates a potential financial strain. If Getaway is unable to meet its financial obligations,
this could be construed as an inability to pay debts, providing a basis for the winding-up
application.
It is important to note that commercial insolvency is a ground for winding up under the
Companies Act. If Best Bank Ltd can demonstrate that Getaway is commercially insolvent,
it could strengthen the case for winding up.
Additionally, the arguments raised by Getaway regarding prescription and subordination of
debt need to be thoroughly examined. If the debt has not prescribed, and there is no valid
subordination agreement in place, Best Bank Ltd may have a strong case for pursuing the
outstanding amounts.
In conclusion, the Companies Act, 2008, provides the legal framework for winding up
companies in South Africa, and the specific grounds for Best Bank Ltd's application should
be based on Getaway's inability to pay debts, supported by evidence of commercial
insolvency.
I recommend proceeding with the winding-up application in accordance with the relevant
provisions of the Companies Act, and carefully addressing and refuting the specific
arguments raised by Getaway in their letter of reply.
b. Locus Standi Based on Subordinated Claim:
The concept of locus standi refers to the legal standing or the right to bring an action. In
the context of winding-up proceedings, Best Bank Ltd's locus standi depends on the
validity and enforceability of the subordination agreement. If there is a valid and legally
binding agreement between Best Bank Ltd and Getaway, subordinating Best Bank Ltd's
debt to the debts of other creditors, Best Bank Ltd would still have the right to bring
winding-up proceedings.
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