"The Launching of Delinquency Proceedings Under the Companies Act 71 of 2008 by means of the Derivative Action: Lewis Group Limited v Woollam 2017 (2) SA 547 (WCC)"
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Authors
Cassim, Rehana
Issue Date
2017
Type
Article
Language
en
Keywords
Delinquent directors , Derivative action , Section 162 of the Companies Act 71 of 2008 , Section 165 of the Companies Act 71 of 2008 , Good faith , Frivolous and vexatious demands , Purpose of delinquency declarations , Fiduciary duty of directors owed to individual shareholders , Abuse of section 162 of the Companies Act 71 of 2008
Alternative Title
Abstract
The case of Lewis Group Limited v Woollam (2016 JDR 1861 (WCC)) dealt with an application brought by Lewis Group Limited in terms of section 165(3) of the Companies Act 71 of 2008 for an order setting aside a demand served on it by a shareholder, Mr David Woollam, on the ground that it was frivolous, vexatious or without merit. The main question before the court was whether, under the Companies Act, a shareholder may institute proceedings to declare a director delinquent under section 162 of the Companies Act 71 of 2008 using the derivative action. The court held that this may not be done. This note critically analyses the judgment and evaluates whether the court came to the correct decision.
Description
Citation
Cassim, Rehana (2017) The Launching of Delinquency Proceedings Under the Companies Act 71 of 2008 by means of the Derivative Action: Lewis Group Limited v Woollam 2017 (2) SA 547 (WCC) 38(3) Obiter 673-688
Publisher
Nelson Mandela University
License
Journal
Volume
Issue
PubMed ID
DOI
ISSN
1682-5853