MRL3701
Assessment 2
Due 9 September 2025
, MRL3701
Assessment 2 – Semester 2 (2025)
Student Name: [Your Full Name]
Student Number: [Your Student Number]
Course Code: MRL3701
Due Date: 9 September 2025
Title: The Legal Consequences of a Sequestration Order: A Case Study of Bongani
1. Introduction
Sequestration is a formal legal procedure through which a debtor’s estate is
surrendered to the Master of the High Court for the benefit of creditors. In South Africa,
the legal framework for sequestration is governed by the Insolvency Act 24 of 1936,
which allows for either voluntary sequestration (initiated by the debtor) or
compulsory sequestration (initiated by a creditor). This paper examines the legal
consequences of sequestration in the context of Bongani, a South African citizen
whose inability to meet his financial obligations has prompted one of his creditors to
apply for his compulsory sequestration. The discussion will consider the legal principles,
statutory framework, and implications of such an order on Bongani’s personal and
financial status.
2. Legislative Background of Sequestration
The South African insolvency regime is rooted in both statutory and common law
sources, the most significant of which is the Insolvency Act 24 of 1936. This Act
provides a comprehensive legal framework for the sequestration of insolvent individuals
and the administration of their estates. Other relevant legislation includes:
The Companies Act 71 of 2008 (for corporate insolvency, though not directly
applicable to Bongani as an individual),
Assessment 2
Due 9 September 2025
, MRL3701
Assessment 2 – Semester 2 (2025)
Student Name: [Your Full Name]
Student Number: [Your Student Number]
Course Code: MRL3701
Due Date: 9 September 2025
Title: The Legal Consequences of a Sequestration Order: A Case Study of Bongani
1. Introduction
Sequestration is a formal legal procedure through which a debtor’s estate is
surrendered to the Master of the High Court for the benefit of creditors. In South Africa,
the legal framework for sequestration is governed by the Insolvency Act 24 of 1936,
which allows for either voluntary sequestration (initiated by the debtor) or
compulsory sequestration (initiated by a creditor). This paper examines the legal
consequences of sequestration in the context of Bongani, a South African citizen
whose inability to meet his financial obligations has prompted one of his creditors to
apply for his compulsory sequestration. The discussion will consider the legal principles,
statutory framework, and implications of such an order on Bongani’s personal and
financial status.
2. Legislative Background of Sequestration
The South African insolvency regime is rooted in both statutory and common law
sources, the most significant of which is the Insolvency Act 24 of 1936. This Act
provides a comprehensive legal framework for the sequestration of insolvent individuals
and the administration of their estates. Other relevant legislation includes:
The Companies Act 71 of 2008 (for corporate insolvency, though not directly
applicable to Bongani as an individual),
