Bosasa's back: court sets aside liquidation

14 March 2019 - 17:15 By ERNEST MABUZA
Employees outside Bosasa's offices in Krugersdorp in February as liquidators took over the premises. The high court in Johannesburg set aside the special resolution taken by its directors on February 12 which placed the Bosasa group of companies under liquidation.
Employees outside Bosasa's offices in Krugersdorp in February as liquidators took over the premises. The high court in Johannesburg set aside the special resolution taken by its directors on February 12 which placed the Bosasa group of companies under liquidation.
Image: Belinda Pheto

The high court in Johannesburg on Thursday reversed the liquidation of the African Global Operations group of companies.

The court set aside the decision taken by six directors of African Global Operations, formerly known as Bosasa, on February 12 to place the group of companies into  voluntary liquidation.

In its urgent application, which was heard on Wednesday, African Global Holdings sought a court order declaring that the special resolution taken by the directors was void from the beginning and of no force and effect.

African Global Holdings advocate Mike Hellens SC had argued that the special resolution was not properly passed.

The company had also sought an order that Cloete Murray and Ralph Lutchman had no rights as provisional liquidators or as liquidators in respect of the companies.

"The consequence will be that the liquidators should never have been appointed," Hellens said on Wednesday.

The directors of the various companies needed a solution following the closure of their bank accounts following allegations of state capture levelled against the companies.

The closure of the accounts meant they would not be able to pay their employees and suppliers or to receive payment for services rendered.

African Global Operations was not immediately available for comment after the judgment on Thursday.

Cloete Murray, one of the liquidators, told eNCA on Thursday afternoon that his legal team had still to read the judgment.

He said he still did not understand why African Global Operations sought the court order.

"That is strange. They resolved to take the companies into liquidation. They then applied on an urgent basis to have the very same resolutions set aside. I have no idea why," Murray said.

He said the court order meant that the companies were placed in the same position they were in February when the resolution to place the group under liquidation was taken.

However, he said, the bank accounts of the companies remained closed.

"I am not aware of new bankers being on board."


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