,
,Question 1
1.1 Explain the purpose of a sequestration order.
1.2 “A sequestration order may not be granted if a debtor has only one creditor and there
are not enough assets to cover the costs of sequestration.” Indicate whether this
statement is true or false, and then provide the reasons for your answer. (5)
1.3 David approaches you for advice. He informs you that his brother, Samuel, owes him
R15 000 for painting services rendered by his company. David explains to you that
despite various attempts to get Samuel to pay his debts, he has yet to make any
payment. David is especially upset because he has heard a rumour that Samuel owes
money to several people, amongst them a mutual best friend, Lenny. Lenny informed
David that Samuel wrote him a letter stating that he is unable to pay his debts to him
(Lenny) and asked in the letter whether they could make arrangements to pay him back
in instalments. David now wants to know from you whether you can assist him to apply
for the compulsory sequestration of Samuel‘s estate. Explain the conduct above and
refer to relevant legislation. (10)
1.4 Critically discuss Harksen v Lane 1998 (1) SA 300 (CC). (10)
1.5 Explain how section 27 of the Insolvency Act 24 of 1936 has the potential to violate
section 9(3) of the Constitution. (10)
1.6 Critically discuss Sarrahwitz v Maritz NO and Another 2015 (4) SA 491 (CC). (10)
TOTAL QUESTION 1: [50]
, Question 2
2.1 Explain the difference between a secured claim and a preferent claim. (10)
2.2 Rachel is an insolvent. She very much wishes to stand as a candidate in the upcoming
municipal elections for the SAD party. Her trustee is of the opinion that she should not
begin her political career at this stage. Explain whether Rachel’s trustee may interfere
with her intended political career. (5)
2.3 What must a plaintiff prove to succeed in bringing the actio Pauliana action? (5)
2.4 The Master may, under certain circumstances, remove a trustee from office. Name and
discuss these instances. (5)
TOTAL QUESTION 2: [25]
Question 3
3.1 Critically discuss the important issues the court had to consider regarding the abuse of
the sequestration process in Ex Parte Snooke 2014 (5) SA 426 (FB). (10)
3.2 Daniel’s estate was sequestrated in 2022. His concurrent creditors received no dividend
and even had to pay contributions. Daniel has not yet been rehabilitated. He has just
won a motorcar to the value of R250 000 in a competition. The trustee of Daniel’s
insolvent estate has heard about his good fortune and claims delivery of the car. Explain
whether Daniel has to deliver the car to the trustee. (5)
,Question 1
1.1 Explain the purpose of a sequestration order.
1.2 “A sequestration order may not be granted if a debtor has only one creditor and there
are not enough assets to cover the costs of sequestration.” Indicate whether this
statement is true or false, and then provide the reasons for your answer. (5)
1.3 David approaches you for advice. He informs you that his brother, Samuel, owes him
R15 000 for painting services rendered by his company. David explains to you that
despite various attempts to get Samuel to pay his debts, he has yet to make any
payment. David is especially upset because he has heard a rumour that Samuel owes
money to several people, amongst them a mutual best friend, Lenny. Lenny informed
David that Samuel wrote him a letter stating that he is unable to pay his debts to him
(Lenny) and asked in the letter whether they could make arrangements to pay him back
in instalments. David now wants to know from you whether you can assist him to apply
for the compulsory sequestration of Samuel‘s estate. Explain the conduct above and
refer to relevant legislation. (10)
1.4 Critically discuss Harksen v Lane 1998 (1) SA 300 (CC). (10)
1.5 Explain how section 27 of the Insolvency Act 24 of 1936 has the potential to violate
section 9(3) of the Constitution. (10)
1.6 Critically discuss Sarrahwitz v Maritz NO and Another 2015 (4) SA 491 (CC). (10)
TOTAL QUESTION 1: [50]
, Question 2
2.1 Explain the difference between a secured claim and a preferent claim. (10)
2.2 Rachel is an insolvent. She very much wishes to stand as a candidate in the upcoming
municipal elections for the SAD party. Her trustee is of the opinion that she should not
begin her political career at this stage. Explain whether Rachel’s trustee may interfere
with her intended political career. (5)
2.3 What must a plaintiff prove to succeed in bringing the actio Pauliana action? (5)
2.4 The Master may, under certain circumstances, remove a trustee from office. Name and
discuss these instances. (5)
TOTAL QUESTION 2: [25]
Question 3
3.1 Critically discuss the important issues the court had to consider regarding the abuse of
the sequestration process in Ex Parte Snooke 2014 (5) SA 426 (FB). (10)
3.2 Daniel’s estate was sequestrated in 2022. His concurrent creditors received no dividend
and even had to pay contributions. Daniel has not yet been rehabilitated. He has just
won a motorcar to the value of R250 000 in a competition. The trustee of Daniel’s
insolvent estate has heard about his good fortune and claims delivery of the car. Explain
whether Daniel has to deliver the car to the trustee. (5)
