- Flynote
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Company Law – s 218(2) of the Companies Act 71 of 2008 – claim by shareholders of company against directors and auditors for damages related to diminution in value of shares – directors alleged to have acted in bad faith, for ulterior purposes and without the requisite degree of care, skill and diligence, in breach of
provisions of the Act – company, rather than shareholders, proper plaintiff in respectof claim against directors – essentially a claim for reflective loss – claim against auditors based on alleged negligence in the manner in which they conducted an audit of the company, in breach of their legal duty – proper plaintiff the company – claim for
pure economic loss – wrongfulness requirement not met – exceptions rightly upheld by court below – appeal dismissed.
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Cited documents 22
Judgment 19
Legislation 3
1. | Companies Act, 2008 | 1909 citations |
2. | Restitution of Land Rights Act, 1994 | 1583 citations |
3. | Banks Act, 1990 | 856 citations |