Public Service Commission Act, 1997
R 385
Companies Act, 1973 (Act No. 61 of 1973)Chapter V: Share capital, Acquisition by Companies of own Shares, Shares, Allotment and Issue of Shares, Members and Register of Members, Debentures, Transfers, and Restrictions on Offering Shares for SaleAcquisition by Companies of own Shares88. Enforceability of contracts for acquisition by company of certain shares |
| 1) | A contract with a company providing for the acquisition of shares issued by it enforceable against the company, except if the company cannot execute the contract without being in breach of section 85(4). |
| 2) | In an action brought on a contract referred to in subsection (1), the company has the burden of proving that execution thereof is or will be in breach of section 85(4). |
| 3) | Until the company has fully performed its obligations in terms of a contract referred to in subsection (1), shareholders who dispose of their shares retain the status of claimants entitled to be paid as soon as the company is lawfully able to do so or, on liquidation, to be ranked subordinate to creditors and shareholders whose claims are in priority to the claims of the class of shares which they disposed of to the company, but in priority to the claims of the other shareholders. |
