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Section 185 of The Companies Act No. 17 of 2015: Exception for payments in discharge of legal obligations etc

    

(1) An approval is not required under section 182, 183 or 184 for a payment made in good faith—
(a) in discharge of an existing legal obligation;
(b) as damages for breach of such an obligation;
(c) in settling or compromising any claim arising in connection with the termination of a person's office or employment; or (d) as a pension for past services.
(2) In relation to a payment referred to in section 182, an existing legal obligation is an obligation of the company, or any body corporate associated with it, that was not entered into in connection with, or in consequence of, the event giving rise to the payment for loss of office.
(3) In relation to a payment to which either section 183 or 184 applies, an existing legal obligation is an obligation of the person making the payment that was not entered into for the purposes of, in connection with or in consequence of, the relevant transfer.
(4) In the case of a payment—
(a) to which both sections 182 and section 183 apply; or
(b) to which both sections 182 and section 184 apply, subsection (2) applies and not subsection (3).
(5) A payment part of which is within subsection (1) applies and part of which is not is to be treated as if the parts were separate payments.

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Disclaimer: This document is not to be taken as legal advise.

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