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Bulawayo High Court

Ames Engineering (Pvt) Ltd v Mekias Munyaradzi & Ors

HB 04/22

Case Details

Court
Bulawayo High Court
Date
6 January 2022
Citation
HB 04/22
Neutral Citation
[2022] ZWHB 04
Outcome
unknown
Case Type
Application

Bench

Presiding
Dube-Banda J
Full Bench
Dube-Banda J
Areas of Law
Company LawCivil Procedure
Keywords
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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