One of my bugbears over the years has been the ineffectiveness of the personal liability of members of deregistered close corporations provisions of the Close Corporation Act (Section 26). Such much so that I have written numerous articles/letters about in various publications including the official attorneys magazine, De Rebus.
The gist of my rants were that while when one is faced with a situation where you are the creditor of a close corporation which has ceased trading with no real assets one can apply for the deregistration of the close corporation …

The concept of separate legal personality for certain forms of business is a practice which we inherited from English law and it has important consequences when extending credit to a “business debtor”. When dealing with private companies, close corporations and even to a degree trading trusts you have to be aware that the shareholders/directors, members or trustees are not personally liable for the debts incurred by the business. In addition to this factor is the fact that the credit extended to business debtor can sometimes be very large.
Therefore creditors extending …