The Stephen Malcolm Gore N.O. case in 2012 gave the South African judicial system its first chance to apply the new provision of its updated company law, Section 20(9) of the Companies Act, 2008, which was meant to provide significantly more certainty and indeed visibility to the doctrine of piercing the corporate veil.
While there are many ways to pierce the corporate veil under both common and statutory law, the new statutory basis for doing so also raised new questions: (i) what is ‘unconscionable abuse’, (ii) who may invoke and use sec. 20(9), (iii) how is sec. 20(9) to be invoked, (iv) what orders may be made under sec. 20(9), (v) does sec. 20(9) override the common law, (vi) and is the statutory provisions to be used as a remedy of last resort?
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