Bosasa has told the High Court that its board was ill-advised when it resolved to enter into voluntary liquidation, adding the meeting at which the decision was taken was not lawfully constituted.
The directors of the company, now known as African Global Holdings, have filed an urgent application at the High Court in Johannesburg to have the decision reviewed and set aside.
The decision to liquidate was taken last month after banks announced that they would close the company’s accounts at the end of last month, citing reputational risk.
Bosasa’s counsel advocate Mike Hellens told the High Court that the meeting at which the decision to sign the liquidation resolution was held was not properly convened as stipulated in the Companies Act.
He said all the parties were present and the documents were passed around for all to sign where their names appeared.
Hellens said the attorney they’d hired did not take the directors through the documentation and the directors just signed without reading them.
The advocate argues the liquidation should be set aside because his clients were ill-advised.
The application is being opposed.