Stamp Duties Act, 1968 (Act 77 of 1968)
R 385
Close Corporations Act, 1984 (Act No. 69 of 1984)Part VIII : Liability of Members and others for debts of Close Corporation64. Liability for reckless or fraudulent carrying-on of business of corporation |
| (1) | If it at any time appears that any business of a corporation was or is being carried on recklessly, with gross negligence or with intent to defraud any person or for any fraudulent purpose, a Court may on the application of the Master, or any creditor, member or liquidator of the corporation, declare that any person who was knowingly a party to the carrying on of the business in any such manner, shall be personally liable for all or any of such debts or other liabilities of the corporation as the Court may direct, and the Court may give such further orders as it considers proper for the purpose of giving effect to the declaration and enforcing that liability. |
| (2) | If any business of a corporation is carried on in any manner contemplated in subsection (1), every person who is knowingly a party to the carrying on of the business in any such manner, shall be guilty of an offence. |
[Section 64(2) substituted by section 224, item 8(6) of Schedule 3(A), of Notice No. 421 dated 9 April 2009]
