Wednesday 4 May 2016

South Africa: prescription and the nature of derivative claims

The Supreme Court of Appeal gave judgment at the end of April in Off-Beat Holiday Club v Sanbonani Holiday Spa (20231/2014) [2016] ZASCA 62: see here, here (rtf) or here (pdf). The case is important (and interesting) because of its discussion of the nature of derivative claims under section 266 ("Initiation of proceedings on behalf of company by a member") of the Companies Act 61 of 1973 (now section 165 of the Companies Act 71 of 2008) and, in particular, whether such claims are subject to the Prescription Act 68 of 1969.

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