TAGARIRA BROS (PVT) LTD v LUNGA NO & ANOR 2003 (2) ZLR 465 (H)

Flynote

Insolvency — liquidation — meeting — validity — provisional liquidator having publicised meeting before confirmation

Headnote

The applicant was the successful bidder for the shares of the second respondent's company at a liquidation meeting convened by the Assistant Master in compliance with a court order. He then made an application for an order that the provisional liquidator (first respondent) or the second respondent transfer the shares, as this had not been done. The second respondent argued that the sale was not valid, as the provisional liquidator had not been confirmed when she publicised the meeting at which the bid was accepted by the creditors, thus the meeting was a nullity. ε Held, that the meeting was properly convened by the Assistant Master. The fact that the appointment of the provisional liquidator had not yet been confirmed when she caused the meeting to be publicised resulted in no prejudice to the second respondent and should not render the meeting a nullity. The sale, accepted by the creditors, was therefore valid, and the transfer was ordered.