Company lawPiercing corporate veilDirector liability
legislation
Statutes Cited
Companies Act
Companies Act
Companies Act
ai analysis
Case Summary
Key Issues
{"issue_text":"Whether first respondent was a director of Coldrac at material times","issue_type":"mixed","dispositive":"yes","related_facts":"Respondent held himself out as director, no proof of resignation notification"}
{"issue_text":"Whether first respondent conducted Coldrac's business recklessly or with intent to defraud","issue_type":"mixed","dispositive":"yes","related_facts":"Entered consent order knowing inability to pay, continued trading while insolvent"}
{"issue_text":"Whether first respondent's immovable properties should be declared executable","issue_type":"law","dispositive":"no","related_facts":"Personal liability established under s 318"}
{"issue_text":"Whether costs should be on legal practitioner-client scale","issue_type":"procedural","dispositive":"no","related_facts":"Parties previously agreed to higher scale in consent order"}
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background
Facts of the Case
Background
The applicant sought to hold the first respondent personally liable for a judgment debt owed by Coldrac Products (Private) Limited, alleging that the respondent conducted Coldrac's business recklessly and with intent to defraud creditors while acting as a director. A consent judgment for US$112,000 had been entered against Coldrac in HC 3159/11 but remained unpaid.
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