Bosasa liquidators intend to appeal a ruling that they must hand the company back to its directors.
This comes after the beleaguered company formerly known as Bosasa changed its mind about its decision to voluntarily hand over the company to liquidators.
EWN reporter Barry Bateman says the liquidators are still consulting with their attorneys to establish which aspect of the judgment they want to appeal.
“The reason the courts reversed the decision to liquidate, was because the meeting that was called by the board of directors was not properly constituted in terms of the Companies Act and a proper notice was not given,” says Bateman.
“The court also slapped the liquidators with a personal cost order and I think that is the aspect they will go after and challenge. It’s also found that the liquidators were not acting in the interest of the creditors. They saw this large firm as a lucrative means to make money and that’s why the court found they were opposing this application,” he says.
According to Bateman, because of the application of leave to appeal the court ruling, the company African Global Operations is still under the control of the liquidators until the matter is resolved.
To hear the rest of the conversation, listen below:
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