MENU

Section 187 of The Companies Act No. 17 of 2015: Payments made without approval: civil consequences

    

(1) If a payment is made in contravention of section 182—
(a) the payment is held by the recipient on trust for the company making the payment; and
(b) any director who authorised the payment is jointly and severally liable to indemnify the company that made the payment for any loss resulting from it.
(2) If a payment is made in contravention of section 183, the payment is held by the recipient on trust for the company whose undertaking or property is or is proposed to be transferred.
(3) If a payment is made in contravention of section 184—
(a) the payment is held by the recipient on trust for persons who have sold their shares as a result of the offer made; and
(b) the expenses incurred by the recipient in distributing the amount of the payment among those persons are to be borne by the director and not retained out of that amount.
(4) If a payment contravenes both sections 182 and 183, subsection (2) applies instead of subsection (1).
(5) If a payment contravenes both sections 182 and 184, subsection (3) applies instead of subsection (1), unless the Court directs otherwise.

« Previous:   Section 186 - Exception for small payments          Next: »   Section 188 - Approval by written resolution: accidental failure to send memorandum

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

Enhance Your Research with Bookmarks and Annotations

Here's how you can use these features:

  • To bookmark this page, click the "Bookmark this Page" button below the document title.
  • To add an annotation, highlight text in the document and select "Add Annotation" from the toolbar that appears.
  • These features are great for organizing your research and keeping track of key information.
  • You can view and manage your bookmarks and annotations on your Bookmarks and Annotations page.

Cited By:

More Sections