Personal liability of directors

In Bellini v Paulsen and Another [2013] 2 All SA 26 (WCC) the court was asked to interpret and give meaning to the phrase ‘conducting the business of a company recklessly and fraudulently’, contemplated in s 424 of the Companies Act 61 of 1973 (1973 Act).

The facts were as follows: Bellini was a creditor of a company under winding-up. The two directors (on behalf of the company) bought certain technology from Bellini. At all relevant times the directors were aware that the company was unable, and would never become able, to pay its debts to Bellini, been admitted by one of the directors when under cross-examination.

Bellini sought to hold the directors liable for the debts and other liabilities of the company by virtue of s 424 of the Act.
The court, on the evidence presented, held that:

“I have successfully used Shaun in commercial arbitration, corporate/commercial law matters and in the arena of insolvency law, in all of which he is well accomplished.”
- Grant Davidson [businessman for three decades]

“Shaun is well versed in business and the laws governing general business, but particularly the information technology industry and Shaun is professional and loyal to a fault”
– Tinus Neethling [managing director of Rorotika Technologies]

“Shaun is imaginative, hardworking, accommodating and honest – Shaun acted for Pirelli Tyres before, while and after I was the managing director of the company, dealing with all legal matters, including the drafting and enforcement of various types of contracts and other litigious matters.”
- Ashley Cooper [former managing director of Pirelli Tyres]

“Shaun’s service is efficient, honest and of the highest professional standard – Shaun acted for the construction companies of which I was the financial director/officer, dealing with all legal matters related to the construction industry, including litigation and the drafting and enforcement of construction related contracts and negotiations.”
- Carel van Reenen [former financial director of Stocks Roads]

“Shaun Nel’s  services were consistently of the highest ethical & professional standards I experienced in my near four decade banking career – Shaun having acted for the bank in enforcing
lending agreements, drafting bank related agreements and giving guidance on various aspects involving banking.”
- William King Powell [retired Standard Bank manager]

Latest News

Ownership of funds deposited into the customer’s account

In Trustees, Estate Whitehead (“Whitehead”) v Dumas andmoo

Phishing scam

In Roestoff v Cliffe Dekker Hofmeyr Inc 2013moo

Set-off of money in bank account

The facts in Standard Bank of South Africamoo

Sole trustee and beneficiary

The court in Groeschke v Trustee, Groeschke Familymoo


Phone: +27 11 467 4748
Phone: +27 87 095 3406
Cell: +27 83 414 6581