Share

ConCourt rules on insolvency appeal

Johannesburg - All employees, including household staff, must be informed if their bosses are declared insolvent, the Constitutional Court ruled on Friday.

"This court declared that the word 'employees' in section 9(4A) of the Insolvency Act includes domestic employees," said Acting Justice Monica Leeuw who drafted the unanimous judgment.

"This interpretation best promotes the spirit, purport and objects of the Bill of Rights."

The declaration was contained in a judgment related to a sequestration order granted against a couple who owed Investec Bank R240m.

Notifying employees is compulsory

The couple and their domestic employees appealed the Western Cape High Court in Cape Town's granting of a final sequestration order. They contended it was unconstitutional because only the couple's business staff had been notified of the action, and not their household workers.

The Constitutional Court found notifying employees was compulsory, but dismissed the appeal in this particular case.

"On the facts of this case, the court held that the petition had been made available in a manner that was reasonably likely to become accessible to the... domestic employees."

The court ruled there could be instances where a provisional sequestration order could be granted, despite a failure to provide notice, "as the purpose of the provision is not to provide a technical defence to debtors".

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Voting Booth
Do you think corruption-accused National Assembly Speaker Nosiviwe Mapisa-Nqakula will survive a motion of no confidence against her?
Please select an option Oops! Something went wrong, please try again later.
Results
No, her days are numbered
41% - 318 votes
Yes, the ANC caucus will protect her
59% - 457 votes
Vote
Rand - Dollar
18.94
-0.2%
Rand - Pound
23.92
-0.1%
Rand - Euro
20.47
+0.0%
Rand - Aus dollar
12.36
-0.1%
Rand - Yen
0.13
-0.3%
Platinum
911.60
+1.6%
Palladium
1,012.97
+1.1%
Gold
2,213.47
+0.9%
Silver
24.80
+0.6%
Brent Crude
86.09
-0.2%
Top 40
68,346
+1.0%
All Share
74,536
+0.9%
Resource 10
57,251
+2.9%
Industrial 25
103,936
+0.6%
Financial 15
16,502
-0.1%
All JSE data delayed by at least 15 minutes Iress logo
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE