1
, MRL3701 Assignment 2 Semester 1 2026 - DUE 24 March 2026
Question 1
What is the intended purpose of section 21 of the Insolvency
Act 24 of 1936? (3)
The purpose of section 21 of the Insolvency Act 24 of 1936 is to:
1. Protect creditors by preventing a solvent spouse from shielding
assets from the insolvent estate through the matrimonial
relationship.
2. Facilitate an effective investigation by the trustee into whether
assets held by the solvent spouse in fact belong to the
insolvent estate.
3. Ensure equitable distribution of assets among creditors by
temporarily vesting the property of the solvent spouse in the
trustee until ownership is determined.
Question 2
Reasons why the Constitutional Court found that section 21 did not
infringe Harksen’s rights under the Interim Constitution (7)
In Harksen v Lane 1998 (1) SA 300 (CC), the Constitutional Court
held that section 21 does not amount to unconstitutional
expropriation, for the following reasons:
1. Temporary vesting, not permanent deprivation
Section 21 provides for temporary vesting of the solvent
spouse’s property in the trustee. Ownership is not transferred
2
, MRL3701 Assignment 2 Semester 1 2026 - DUE 24 March 2026
Question 1
What is the intended purpose of section 21 of the Insolvency
Act 24 of 1936? (3)
The purpose of section 21 of the Insolvency Act 24 of 1936 is to:
1. Protect creditors by preventing a solvent spouse from shielding
assets from the insolvent estate through the matrimonial
relationship.
2. Facilitate an effective investigation by the trustee into whether
assets held by the solvent spouse in fact belong to the
insolvent estate.
3. Ensure equitable distribution of assets among creditors by
temporarily vesting the property of the solvent spouse in the
trustee until ownership is determined.
Question 2
Reasons why the Constitutional Court found that section 21 did not
infringe Harksen’s rights under the Interim Constitution (7)
In Harksen v Lane 1998 (1) SA 300 (CC), the Constitutional Court
held that section 21 does not amount to unconstitutional
expropriation, for the following reasons:
1. Temporary vesting, not permanent deprivation
Section 21 provides for temporary vesting of the solvent
spouse’s property in the trustee. Ownership is not transferred
2
