oa Civil Engineering = Siviele Ingenieurswese - Keeping in line on board
|Article Title||Keeping in line on board|
|© Publisher:||South African Institution Of Civil Engineering (SAICE)|
|Journal||Civil Engineering = Siviele Ingenieurswese|
|Publication Date||Jan 1964|
|Keyword(s)||Companies Act, Creditors, Debts and Directors|
A limited right to sue the directors of a company for its debts is given to creditors in section 424 of the Companies Act. This says that when it appears that any business of a company was or is being carried on recklessly, or with intent to defraud its creditors or those of any other person, or for any fraudulent purpose, a court may declare that any person who was knowingly a party to the carrying on of the business in that manner shall be personally responsible for any of the debts or other liabilities of the company as the court may direct.
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