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Harare High Court
Portlook Security (Pvt) Ltd v Jackson Muguti and Jacinth & Associates Debt Collectors (Pvt) Limited
HH 179-17
Case Details
Court
Harare High Court
Date
15 March 2017
Citation
HH 179-17
Neutral Citation
[2017] ZWHH 179
Outcome
unknown
Case Type
Application
Bench
Presiding
Mangota J
Full Bench
Mangota J
Areas of Law
Company lawCommercial litigation
Keywords
Section 318 Companies ActPiercing corporate veilDirector liabilityFraudulent conduct
Tags
Corporate veil piercingDebt collectionFraudulent conduct
legislation
Statutes Cited
- Companies Act [Chapter 24:03]
ai analysis
Case Summary
Key Issues
- {"issue_text":"Whether the corporate veil should be pierced to hold the first respondent personally liable for the company's debt under s 318(1)(c) of the Companies Act","issue_type":"law","dispositive":"yes","related_facts":"First respondent channeled proceeds to personal account; acted in personal capacity; failed to rebut allegations"}
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background
Facts of the Case
Background
The applicant company contracted the second respondent debt collection company to collect debts on its behalf. The second respondent collected $35,000 but only remitted $13,500, leaving $21,500 unaccounted for. After a deed of settlement reduced the amount to $20,500 and a consent order was entered, the second respondent still failed to pay. The applicant then sought to pierce the corporate veil and hold the first respondent, a director of the second respondent, personally liable under s 318(1)(c) of the Companies Act.
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