Voidable Sales: The Insolvency Act and the Sale of Your Business
28 September 2018, Lloyd Bell
Section 34 of the Insolvency Act No. 24 of 1936
(“the Act”) provides that if a trader sells in... terms of a contract any
business belonging to him, or the goodwill of such business, or any goods or
property forming part thereof (except in the ordinary course of that business
or for securing the payment of a debt), and such trader has not published a
notice of such intended transfer, the sale shall be void against his creditors
for a period of six months after such transfer, and shall be void against the
trustee of his estate, if his estate is sequestrated at any time within the
said period.