Court to decide on Bosasa

The future of facilities management and security company Bosasa is set to be decided by the Supreme Court of Appeal (SCA).

Liquidators appointed to wind up Bosasa, now trading as African Global Operations, and its subsidiaries have taken their fight to keep the Krugersdorp group under liquidation to the SCA in Bloemfontein. Arguments were expected to be heard yesterday.

Ralph Lutchman, Tania Oosthuizen and Cloete Murray were appointed as liquidators of Bosasa and 14 of its subsidiaries in February.

Bosasa’s board of directors, led by the now deceased Gavin Watson, filed an urgent high court application in March seeking to have the resolutions adopted by the board declared null and void.

Bosasa’s board, represented by advocate Mike Hellens, further argued before the high court that Bosasa was solvent – the only issue being a notice served by the banks informing Bosasa Operations, the main holding company, of their intention to close the company’s bank accounts.

In addition, the Bosasa board contended, Murray and the other liquidators’ appointment should be set aside, because they were appointed by the Master of the High Court in Pretoria, while Bosasa fell under the jurisdiction of the Johannesburg Master.

The liquidators introduced two liquidator’s reports, contending and setting out reasons why Bosasa was, in fact, insolvent.

But the high court refused to consider these reports on a technicality, with Acting Judge Joolam Ameer ruling in the Bosasa board’s favour earlier this year, setting aside the liquidation.

The liquidators filed for leave to appeal Ameer’s judgment and further applied for an expedited hearing date in the SCA.

According to the heads of arguments filed by both parties, the issues remain largely similar to what was argued before the high court, with counsel for the liquidators intending to have judge Ameer’s ruling set aside.

The matter continues.

– News24 Wire