AGREEMENTS ENTERED INTO BY DE-REGISTERED ENTITIES

TO ALL OUR ESTEEMED BUSINESS CLIENTS

Number

23/2016
The recent reported case of Anva Properties CC v End Street Entertainment Enterprises CC [2016] JoL 35186 (WCC)(case attached for ease of reference) it was again reiterated that the de-registration of a Close Corporation puts an end to the corporate entity and dealings by such entity is not valid.
 
Where a lease agreement is entered into by a de-registered Close Corporation such lease is ab initio void.  If the Close Corporation takes steps to restore it to the register of Close Corporations, it does not validate the activities entered into during the de-registration, but such activities remain void. Thus a lease agreement entered into at the time when the Close Corporation was de- registered cannot revive upon restoration
 
Conclusion
 
Before concluding any contract of sale or lease in terms of which a Company or Close Corporation is a party, ensure that the Company or Close Corporation has not been de-registered with CIPC.


For any queries please contact our property law division at the details below:

Allen West
Tel: 012 425 3549
awest@macrobert.co.za

Daleen Loubser
Tel: 012 425 3489
dloubser@macrobert.co.za

Disclaimer: This newsflash is for general information only and should not be used as legal or professional advice. No liability can be accepted for any errors or omissions, nor for any loss or damage arising from reliance and any information therein