MRL3701
ASSIGNMENT 2 SEMESTER 2 2025
UNIQUE NO.
DUE DATE: 2025
, Name:
Student Number:
Module Code: MRL3701
Assessment 2 – Semester 2, 2025
Question: Discuss the effect that such an order would have on Bongani (10
marks)
The Effect of a Sequestration Order on Bongani
Once the court grants a final sequestration order against Bongani’s estate in terms of
the Insolvency Act 24 of 1936, several legal consequences will follow which
significantly affect Bongani’s financial and legal standing.
1. Vesting of Estate in the Master and Trustee
Bongani’s estate will vest in the Master of the High Court upon the granting of the
sequestration order, and later in the trustee once one is appointed (section 20(1)(a) of
the Act). This means that Bongani loses control over his property and assets, which will
now be administered by the trustee for the benefit of his creditors.
2. Loss of Capacity to Deal with Estate Assets
From the moment of sequestration, Bongani loses the legal capacity to manage,
dispose of, or receive any property belonging to his insolvent estate (section 23(1)).
Any attempt to do so would be void against the trustee. This includes both movable and
immovable property, like his flat and motor vehicle.
3. Impact on Contracts and Legal Proceedings
Bongani cannot enter into contracts that affect his estate without the trustee’s consent.
He also cannot be sued or sue in his own name regarding matters involving the
insolvent estate; the trustee must act on his behalf (section 23(1)).
ASSIGNMENT 2 SEMESTER 2 2025
UNIQUE NO.
DUE DATE: 2025
, Name:
Student Number:
Module Code: MRL3701
Assessment 2 – Semester 2, 2025
Question: Discuss the effect that such an order would have on Bongani (10
marks)
The Effect of a Sequestration Order on Bongani
Once the court grants a final sequestration order against Bongani’s estate in terms of
the Insolvency Act 24 of 1936, several legal consequences will follow which
significantly affect Bongani’s financial and legal standing.
1. Vesting of Estate in the Master and Trustee
Bongani’s estate will vest in the Master of the High Court upon the granting of the
sequestration order, and later in the trustee once one is appointed (section 20(1)(a) of
the Act). This means that Bongani loses control over his property and assets, which will
now be administered by the trustee for the benefit of his creditors.
2. Loss of Capacity to Deal with Estate Assets
From the moment of sequestration, Bongani loses the legal capacity to manage,
dispose of, or receive any property belonging to his insolvent estate (section 23(1)).
Any attempt to do so would be void against the trustee. This includes both movable and
immovable property, like his flat and motor vehicle.
3. Impact on Contracts and Legal Proceedings
Bongani cannot enter into contracts that affect his estate without the trustee’s consent.
He also cannot be sued or sue in his own name regarding matters involving the
insolvent estate; the trustee must act on his behalf (section 23(1)).
