Question 1

1.1 Explain the concept "concursus creditorum" as well as what it presupposes. (5)

1.2 ABC Ltd is a British company that owns property which is lying in a warehouse in Cape Town harbour. ABC Ltd does not have a place of business in South Africa. Will the Western Cape High Court, Cape Town, have jurisdiction to sequestrate ABC Ltd.'s estate? (5)

1.3 Fred approaches you for advice. He informs you that Jenna owes him R24 000 for cleaning services rendered by his company. Fred explains to you that despite various attempts to get Jenna to pay her debts over several months, she has yet to make any payment. Fred is especially upset because he has heard a rumour that Jenna has a sister living in the United States of America, and so as to avoid creditors' claims on her outstanding debts, she wants to send some of her property to her sister in Las Vegas to keep safe on her behalf. Fred wants to know from you whether you can assist him to apply for the compulsory sequestration of Jenna's estate. Refer to the relevant act of insolvency, including a reference to the relevant legislation. (10)

1.4 Discuss Amod v Khan 1947 (2) SA 432 (N). (10)

1.5 Explain how section 27 of the Insolvency Act 24 of 1936 has the potential to violate section 9(3) of the Constitution