CC PROPERTY HANDED OVER TO STATE

ANNUAL RETURNS NOT FILED, CC DE-REGISTERED AND PROPERTY GOES TO THE STATE

Outstanding paperwork can carry hefty consequences! STBB recently released this case summary...

The case summary pertains to: ABSA Bank Ltd v Companies and Intellectual Property Commission of South Africa and Others, ABSA Bank Ltd v Voigro Investment 19 CC (8250/12, 6601/2012) [2012] ZAWCHC 182 (14 November 2012)

Both the old and the new Companies Acts, read with the Close Corporation Act, provide for the deregistration of corporations that fail to file annual returns. One consequence is that a CC’s assets, including its immovable property, become bona vacantia and vested in the state. 

However, unlike before, there is no express provision for the reinstatement of a deregistered company by way of an application to Court. The holder of the bond over such property will need to apply to the Commission and provide the necessary CC’s outstanding information before reinstatement can be achieved.

The full Judgment may be viewed here.

FACTS
Absa obtained default judgment against Voigro Investments 19 CC (‘the CC’) in respect of a mortgage debt, and, on 13 December 2011, caused the mortgaged property to be attached in execution.

SIGNING INTO AN OWNERS ASSOCIATION?

AGREEING TO BECOME A MEMBER OF THE OWNERS ASSOCIATION HAS CONSEQUENCES

In a recent case summary compiled by STBB, a purchaser was not happy to pay the same levies as everyone else due to the benefits that he felt he was not receiving. It’s an interesting read and holds fair warning to those about to purchase within a membership of an owners association.

The case is: Kingsmead Office Park Owners Association v Shasri Investments CC [2012] JOL 29586 (KZD)

Where a purchaser agrees in a sale agreement to be bound to the provisions of an owners association, he cannot later on refuse to pay levies merely because his property receives less benefit from the communal benefits (such as fencing and garden areas) than other owners. This is because he is contractually bound to comply with the association's rules and regulations.