n SA Mercantile Law Journal = SA Tydskrif vir Handelsreg - A critical analysis of the regulation of distributions by a company's board

Volume 24, Issue 4
  • ISSN : 1015-0099
  • E-ISSN: 1996-2185



Lord Halsbury LC, in , declared that '[a company's] capital is fixed and certain, and every creditor of the company is entitled to look to that capital as his security'. Although no longer premised on capital maintenance, it is this level of creditor and shareholder protection that the Companies Act 71 of 2008 (the Act) seeks to achieve in regulating the distributions made by companies. Such regulation is, as it rightly should be, highly regarded in the protection of company creditors as well as minority shareholders from the exploitation they may suffer as a result of mala fide distributions made by a company.

Loading full text...

Full text loading...


Article metrics loading...


This is a required field
Please enter a valid email address
Approval was a Success
Invalid data
An Error Occurred
Approval was partially successful, following selected items could not be processed due to error