1887

oa De Rebus - Hiding behind the veil : feature

 

Abstract

The vexed topic of piercing the corporate veil under s 20(9) of the Companies Act 71 of 2008 (the Act) was discussed by the author in in August 2012 (2012 (Aug) 22). Section 20(9) of the Act gives the courts a general statutory discretion to pierce the corporate veil. It was submitted in that article that there are some uncertainties regarding the interpretation and the scope of s 20(9) of the Act, such as -

  • the meaning of the term 'unconscionable abuse';
  • whether s 20(9) overrides the common law instances of piercing the corporate veil;
  • whether piercing of the veil is still to be regarded as an exceptional remedy that may be used only as a last resort; and
  • who an 'interested person' would be under s 20(9).

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/content/derebus/2013/535/EJC141875
2013-10-01
2016-12-06
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