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On the set hearing date, the matter will be heard by the Commissioner of the
Small Claims Court that will provide both parties an opportunity to provide
their version of events in respect of the claim. The parties may also hand in
documents and call witnesses to prove or disprove the claim. After hearing both
versions, the Commissioner will make a judgment which must be complied with
within 10 days.

If the claimant is successful with the claim and the defendant refuses to
satisfy the judgment, a warrant of execution will be issued by a clerk of the
Magistrate Court and the sheriff, at the cost of the claimant, will serve such on
the defendant and attach sufficient property to satisfy the claimant’s claim. If
the claimant is unsuccessful, he or she cannot appeal the judgment but a
review of the proceedings is allowed.
As can be seen from the above, instituting action in the Small Claims Court is
a viable solution for enforcing your rights and should be considered by you in
respect of your claim.
More information on Small Claims Courts can be found at www.justice.gov.za/
scc/scc.htm

My company is going under - what is my
personal exposure?

Japie Kruger
July 2018

“My wife and I are the sole shareholders and directors of our family company.
We’ve had a few good years, but with the current economic times, despite
our best efforts to keep the company afloat, it doesn’t look like the company
is going to make it. For the first time this reality has hit us and we are both
worried that the company’s creditors will come after us and take our home Litigation
and savings. Can they do this?”

The short answer though is “no”. Your company creditors should not be able to
come after you personally. But, this is a qualified “no”. At the core of our company
law is the concept of limited liability which implies that the shareholders and
directors of the company will not be liable for the actions or conduct of the
company, provided however they have played within the rules. The concept
of limited liability allows shareholders and directors to take business decisions
without the fear that they will be held personally accountable – again, provided
they play within the rules.

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