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Harare High Court
Barzem Enterprises (Private) Limited v Release Power Investments (Private) Limited and Onias Zidanda Gumbo and Evelyne Winnite Gumbo
HH 647-18
Case Details
Court
Harare High Court
Date
17 October 2018
Citation
HH 647-18
Neutral Citation
[2018] ZWHH 647
Outcome
unknown
Case Type
Application
Bench
Presiding
CHAREWA J
Full Bench
CHAREWA J
Areas of Law
Company lawCivil procedure
Keywords
Section 318 Companies ActFraudulent conductCorporate personalityPersonal liability
Tags
Corporate veilDirector liabilityContract law
legislation
Statutes Cited
- Companies Act [Chapter 24:03]
- Interpretation Act [Chapter 1:01]
- Interpretation Act [Chapter 1:01]
ai analysis
Case Summary
Key Issues
- {"issue_text":"Is the claim against the second and third defendants contractual?","issue_type":"law","dispositive":"no","related_facts":"Claim based on personal undertakings and section 318, not contract"}
- {"issue_text":"Is a separate application for leave required before instituting action against directors under section 318?","issue_type":"procedural","dispositive":"yes","related_facts":"Interpretation of \"application\" in section 318"}
- {"issue_text":"Must intention to defraud be proven in the pleadings before invoking section 318?","issue_type":"procedural","dispositive":"no","related_facts":"Allegations of fraud in summons"}
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background
Facts of the Case
Background
The plaintiff sued defendants for payment of USD207,344.16 for equipment purchased by the first defendant. The second and third defendants, as directors of the first defendant, were sued personally under section 318 of the Companies Act for allegedly acting fraudulently, recklessly or with gross negligence. They excepted to the summons claiming it disclosed no cause of action against them.
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