Implementation of Geneva Conventions Act, 2012
R 385
Close Corporations Act, 1984 (Act No. 69 of 1984)Part IX : Winding up71. Repayment of salary or remuneration by members |
| (1) | If a corporation being wound up is unable to pay its debts, and— |
| (a) | any direct or indirect payment of a salary or other remuneration was made by the corporation within a period of two years before the commencement of its winding-up to a member in his capacity as an officer or employee of the corporation; and |
| (b) | such payment was, in the opinion of the Master, not bona fide or reasonable in the circumstances, |
the Master shall direct that such payment, or such part thereof as he may determine, be repaid by such member to the corporation.
| (2) | A person who has within a period of two years referred to in subsection (1)(a) ceased to be a member of a corporation referred to in that subsection may, under the circumstances referred to therein, be directed by the Master to make a repayment provided for in subsection (1), if, and to the extent that, any such repayments by present members are, together with all other available assets, insufficient for paying all the debts of the corporation. |
| (3) | The provisions of subsections (4) and (5) of section 70 shall mutatis mutandis apply, in respect of any repayment to a corporation in terms of subsection (1) or (2). |
