BUSINESS MAN ARRESTED FOR CONTRAVENTION OF INSOLVENCY ACT

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By: Neo Ntsele

A 53-year-old director of an insolvent company was served with summons on Wednesday 17, to appear before the Bloemfontein Magistrates Court on 21 August 2024 for contravention of Insolvency Act 24 of 1936- Section 136 (b) (ii), read with Section 363 (4) of the Companies Act 61 of 1973.

Internal assessment was launched, where it was discovered that during consultations conducted between October 2018 and May 2019, the suspect allegedly failed to provide the appointed liquidator with his business records and necessary documents.

As a result, the administration of the solvent estate was prejudiced.

A case was opened and referred to the Hawks’ Serious Commercial Crime Investigation in Bloemfontein for further investigation, which led to the arrest of the suspect.