Transfer and liquidation: A critical analysis of the transfer of shares during the process of liquidation and an analysis of Sections 8(2)(b), 15(6) and schedule 5 of the Companies Act 71 of 2008
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Date
2019
Authors
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Publisher
University of the Western Cape
Abstract
In corporate law, the transfer of shares plays an important role and until the case of Smuts v
Booyens; Markplaas (Edms) Bpk v Booyens 2001 (4) SA [SCA] courts were not always clear
on the meaning of ‘transfer’. What constitutes a transfer of shares and the juncture at which the
law regards that transfer as having taken effect is therefore of critical importance where an
insolvent company is being wound-up.
The objective of this study is to provide a thorough analysis of the restrictions and limitations
imposed on the transfer of shares of a private company being wound-up or any alteration in the
status of its shareholders effected after the commencement of the winding-up. The position on
transferability of shares is one of the defining features of a private company, in order to exist
as a private company, it has to provide such restrictions as it deems fit by way of its
Memorandum of Incorporation.
Description
Magister Legum - LLM
Keywords
Company, Directors, Shareholders, Transferability, Restriction