Pride Milling Company (Pty) Ltd v Bekker NO and Another (393/2020) [2021] ZASCA 127 (30 September 2021)

Company law – s 341(2) of the Companies Act 61 of 1973 –
disposition by a company of its property after commencement of winding-up –
such disposition void ab initio – court nevertheless retaining discretion to
declare disposition valid – discretion to be exercised judicially in light of all of
the facts of the case – company effecting one payment to a creditor prior to grant
of provisional order of winding-up – court refusing to validate – three payments
made after grant of provisional order – payments constituting void dispositions
in terms of s 341(2) read with s 348 of the Companies Act – court has no
discretion to validate such payments