CONUNDRUM OF THE STATUS OF A COMPANYYS PROPERTY SOLD IN EXECUTION BEFORE LIQUIDATION BY ISAAC NSIZWANE
The law can get tricky when a company subject to liquidation proceedings has sold an immovable asset. In Legh v Nungu Trading 353 (Pty) Ltd and another 2008 (2) SA 1, a shareholder of a company instituted urgent liquidation proceedings in the Witwatersrand Local Division on the basis that the company was unable to pay its debts.
23 October 2008
THE EFFECT OF WINDING-UP OF A COMPANY AFTER SALE OF IMMOVABLE PROPERTY IN EXECUTION, BUT PRIOR TO TRANSFER OF SUCH IMMOVABLE PROPERTY - TAFADZWA MUSHONGA
Purchasers of property at a sale in execution should be aware of the risk particularly where the execution debtor whose property has been sold is a company, rather than an individual. The transfer of property almost invariably takes from about six to eight weeks. In the unfortunate situation that the seller, (where such a seller is a company), is liquidated prior to transfer being registered into the purchaser’s name, the property sold in execution falls under the control of the Master of the High Court pending the appointment of a liquidator. The purchaser does not have an automatic right to transfer of the property.
