n SA Mercantile Law Journal = SA Tydskrif vir Handelsreg - The debate on the meaning and application of 'arrangement' : before and after Senwes v Van Heerden & Sons : case comments
|Article Title||The debate on the meaning and application of 'arrangement' : before and after Senwes v Van Heerden & Sons : case comments|
|© Publisher:||Juta Law Publishing|
|Journal||SA Mercantile Law Journal = SA Tydskrif vir Handelsreg|
|Publication Date||Jan 2007|
|Pages||534 - 553|
The recent decision in Senwes v Van Heerden & Sons ( 3 All SA 24 (SCA)) concerned the application of s 169A of the now defunct Co-operatives Act 91 of 1981 (it was replaced by the Co-operatives Act 14 of 2005 as from May 2007). The section, which amongst other things sets out the procedure for implementing an 'arrangement' between a co-operative and its members or creditors, was the equivalent s 311 of the Companies Act 61 of 1973 (where s 169A referred to co-operatives, s 311 speaks of companies). The consequence of this similarity is that cases dealing with s 311 almost invariably applied to s 169A and the other way around. It also means that despite s 169A having ceased to be operational, cases interpreting it will continue to be relevant for purposes of s 311. It is for these reasons that an examination of Senwes v Van Heerden & Sons remains relevant. It should further be observed that, although both s 169A and s 311 concern arrangements involving either members or creditors, the scheme under consideration in this note concerned members only.
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