Doctoral Degrees (Mercantile Law)

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The external relations of company groups in South African law : a critical comparative analysis
(Stellenbosch : University of Stellenbosch, 2011-03) Stevens, Richard Arno; Van Wyk, Andreas Herculas; Butler, David William; University of Stellenbosch. Faculty of Law. Dept. of Mercantile Law.
ENGLISH ABSTRACT: Groups of companies are part of the realities of the modern economic system. Despite the fact that such groups often function as a single economic entity, the legal point of departure remains that each company within the group of companies is a separate juristic person. The result of this is that a creditor of a company within the group can, in principle, only enforce his claim against the company which he contracted with or which caused him harm. Should he wish to claim from the holding company or other solvent companies within the group, he would have to rely on an exception to the doctrine of separate juristic personality, viz the possibility of piercing the socalled corporate veil. This dissertation is a comparative study of the extent to which the law protects a creditor of an insolvent company within a group. The applicable laws of Australia, Germany, New Zealand, the United Kingdom and the United States of America, were investigated and compared to the South African position. The dissertation concludes that the South African legal treatment of the problem is unsatisfactory and that the law should be amended through appropriate legislation.