A corporation which is deregistered under the Companies Act 2008 is automatically and retrospectively re-vested with its rights when it is reinstated (under section 82(4)).
In ZNK Investments CC v Luckytso Transport and Construction CC, a sale in execution of a deregistered close corporation had taken place whilst it was deregistered. It was held that the re-registration of the corporation re-vested the property in the corporation and validated its corporate activities during the period of deregistration.
Although on deregistration a corporation’s assets become ownerless property (bona vacantia) that notionally passes to the state, the legal effect of reinstatement is to restore the situation unless some other party shows prejudice and reasons to ameliorate the position under section 83(4).
The Companies Act 2008 is not clear in this regard and this judgment is helpful in creating certainty.
