Court hears Bosasa directors made 'big mistake' on liquidation decision
The board of directors says it signed-off on the decision to liquidate a company worth billions of rand without having properly read what exactly it is they were signing.
PRETORIA – Bosasa’s board says it has made a big mistake after taking poor advice and not properly reading documents before signing them.
These were the submissions the High Court in Johannesburg heard on Wednesday in an application by the directors of African Global Holdings to have their decision to liquidate the company reviewed and set aside.
The decision was taken last month after the company's banks announced they would close their accounts, citing reputational risk.
A whole board of directors says it signed-off on the decision to liquidate a company worth billions of rand without having properly read what exactly it is they were signing.
The board further claims that they were under pressure and the attorney they'd hired didn't fully explain what it was they were signing, adding he just placed documents in front of them and showed them were to make their mark.
The appointed liquidator Cloete Murray told the court that the holding company of African Global Operations, the applicants, did not have the legal standing to challenge the decision to enter voluntary liquidation.
Cloete's counsel further argued that the firm wants the liquidation decision reversed because Murray has taken control of the company, which is not sitting well with the former directors.
Judgment has been reserved.
(Edited by Shimoney Regter)