section 318 Companies Actdirector personal liabilityfraudulent representationreckless tradingcorporate veil
Tags
company lawdirector liabilityfraudulent tradingsection 318 Companies Act
legislation
Statutes Cited
Companies Act [Chapter 24:03]
Companies Act [Chapter 24:03]
Companies Act [Chapter 24:03]
ai analysis
Case Summary
Key Issues
{"issue_text":"Whether 1st and 7th respondents are personally liable under section 318(1) of Companies Act for the company's judgment debt","issue_type":"law","dispositive":"yes","related_facts":"Company conducted business fraudulently; Directors made false representations; Company failed to fulfill obligations"}
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background
Facts of the Case
Background
Ames Engineering paid USD220,336.42 to NU Aero (Fly Africa) for payment to its South African suppliers. The company failed to make the payments and was subsequently granted summary judgment. When execution returned nulla bona, Ames Engineering applied to declare the company's directors personally liable under section 318(1) of the Companies Act for conducting business fraudulently/recklessly.
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