Levy v Registrar of Companies [1915] ZATPD 53 (25 July 1915)

Company.-Object illegal.-Grant of loans on lottery.-Refusal to Register Lottery -Grant of loans on seciirity on result of hone race.-Law 7 of 1890.

The objects of a company were to grant loans to, certain bondholders on approved security at certain rates of interest. The application of a bondholder for a
loan was, however, not to be considered unless he drew one of the first three, horses in a horse race nominated by the Board of Directors. Held, that such an arrangement contravened the Lottery Law and that the Registrar of Companies had therefore rightly refused to register the company.