Legal Question in Business Law in South Africa

If a husband and wife is in community of property and the wife owns a business that it registered as a Closed Corporation and she is the only member. If she get sued by someone that her husband owes money to, can they take the assets of the business or can they only take her private assets???


Asked on 4/13/12, 1:06 pm

1 Answer from Attorneys
Melcom Smit Smit and Associates

Good day,

In terms of the Closed Corporation Act, the Closed Corporation is a separate legal entity (an entirely different person, if you will). If the Wife gets �sued� over personal debt, the Closed Corporations assets remain safe.

They may execute the judgement against the personal belongings of the spouses, but the not belongings of the Closed Corporation.

Kind Regards

Read more
Answered on 4/13/12, 2:53 pm


Related Questions & Answers

More Business Law questions and answers in South Africa