, LRM3601 Assignment 2 (COMPLETE ANSWERS)
Semester 2 2025 - DUE 5 September 2025; 100%
TRUSTED Complete, trusted solutions and
explanations.
The Status of Contracts Concluded by Deregistered
Companies under the Companies Act 71 of 2008: A Critical
Discussion
1. Introduction
The deregistration of companies raises profound questions about
corporate existence, the continuity of legal personality, and the validity
of transactions concluded during periods of deregistration. The problem
becomes acute when a deregistered company, which is removed from
the register of companies by the Companies and Intellectual Property
Commission (“the Commission”), engages in transactions of significant
commercial and public interest.
The facts presented revolve around Sand-Ton Computer Systems (Pty)
Ltd (“Sand-Ton”), a private company deregistered for failure to file
annual returns in terms of section 33 of the Companies Act 71 of 2008
(“the Act”). During its deregistration, Sand-Ton entered into a supply
contract with the Department of Education (“the Department”),
supplying computers to rural schools. Thereafter, Sand-Ton was
reinstated to the register. The Department has refused payment, arguing
that Sand-Ton lacked corporate existence when the contract was formed,
rendering the contract void.
This essay will critically assess whether such an argument can stand,
with reference to the relevant provisions of the Act, South African case
law, and scholarly commentary. It will also consider whether the
Companies Act adequately addresses the uncertainty surrounding
contracts entered into while a company is deregistered.
Semester 2 2025 - DUE 5 September 2025; 100%
TRUSTED Complete, trusted solutions and
explanations.
The Status of Contracts Concluded by Deregistered
Companies under the Companies Act 71 of 2008: A Critical
Discussion
1. Introduction
The deregistration of companies raises profound questions about
corporate existence, the continuity of legal personality, and the validity
of transactions concluded during periods of deregistration. The problem
becomes acute when a deregistered company, which is removed from
the register of companies by the Companies and Intellectual Property
Commission (“the Commission”), engages in transactions of significant
commercial and public interest.
The facts presented revolve around Sand-Ton Computer Systems (Pty)
Ltd (“Sand-Ton”), a private company deregistered for failure to file
annual returns in terms of section 33 of the Companies Act 71 of 2008
(“the Act”). During its deregistration, Sand-Ton entered into a supply
contract with the Department of Education (“the Department”),
supplying computers to rural schools. Thereafter, Sand-Ton was
reinstated to the register. The Department has refused payment, arguing
that Sand-Ton lacked corporate existence when the contract was formed,
rendering the contract void.
This essay will critically assess whether such an argument can stand,
with reference to the relevant provisions of the Act, South African case
law, and scholarly commentary. It will also consider whether the
Companies Act adequately addresses the uncertainty surrounding
contracts entered into while a company is deregistered.
