ANCYL: Liquidation decision flawed

daveza

daveza

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http://www.news24.com/SouthAfrica/Politics/ANCYL-Liquidation-decision-flawed-20131107

Johannesburg - A South Gauteng High Court decision to put the ANC Youth League under provisional liquidation is "flawed", the organisation said on Thursday.

"While the ANCYL respects the decision of the concerned court, we are however of the firm view that the honourable judge erred both in law and substance by granting a winding-up of a voluntary association," national convenor Mzwandile Masina told reporters in Johannesburg.

"The ANCYL is of the view that this judgment is flawed on the basis that such a decision [to wind-up an entity] can only be applicable to a corporate body and not a voluntary political association."

The African National Congress Youth League was put under provisional liquidation last week.

This reportedly means that the affairs of the ANCYL will be put in the hands of the Master of the High Court, and that its interim leadership is no longer in a position to make any decisions until the final order in January.

An events company in Bloemfontein applied for the ANCYL to be sequestrated over a R15m debt not settled since 2008.

Masina said that if the judgment was not overturned, it would have "dire political implications".

"It will shutter political activism and the sharpening of many young people in this country."

He called on all structures of the ANCYL and supporters to go to the high court on 27 January and support the ANC, which is a respondent in the matter.

"[Let us] showcase that the rich history of the ANCYL cannot be nullified under our democratic dispensation."
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political activism = spend without needing to pay ?!

Do these bozos have a clue ?
 
Wahahaha thats too funny.

The only political consequences it will have is that the ANCYL and its mother body the ANC will actually have to PAY for services.
 
A voluntary association can have corporate personality, knobs.

Universitas personum.

Just had a look at their constitution adopted in 2011: http://www.ancyl.org.za/list.php?t=3


ARTICLE E: STATUS

1. The ANCYL shall be a legal persona with perpetual succession of power, apart from its individual members, to acquire, hold and alienate property, enter into agreements, do all things necessary to carry out its aim and objects and defend its members, property and reputation.
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It is a universitas personum. Judge is right, they are wrong.
 
He called on all structures of the ANCYL and supporters to go to the high court on 27 January and support the ANC, which is a respondent in the matter.

"[Let us] showcase that the rich history of the ANCYL cannot be nullified under our democratic dispensation."
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How will toi-toi-ing change the decision of the judge.
 
If they pay their bills like all us do then this issue would have never seen the light of day.
 
kooldude said:
If they pay their bills like all us do then this issue would have never seen the light of day.
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how very colonialist of you, Bills are not of African culture how can you ask them to yield to such non African traditions?
 
I must say I love the attempt to claim that political parties enjoy legal personality and agency to act but are immune from liability and responsibility. What a wonderfully politician objective - power and access to means without concomitant responsibility - much like represented parties getting public funds without the PFMA to follow.
In some way it would be great if they succeed being a senior political party office bearer would be an awesome position to be in - rather than a monumental nuisance involving sticking your neck out - hell if their premise moves beyond political parties and is applied to all creatures of the same class, namely voluntary associations, we should set up shelf voluntary associations at a profit.

I do have a suspicion - IzZzy if you could please comment - that there may be a problem with the approach adopted by the court in that it both provisionally liquidates and sets course for the final sequestration of the league which sequestration could leave creditors without a person to institute claim against (the league having been sequestrated) and that voluntary associations are liquidated by the court with consequences on decisions taken by officers collectively to incur liabilities. Essentially if the court made any error it was in affording to much limitation on liability.
 
daveza said:
If the ancyl is liquidated it cannot conduct business again for how long ?
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Nothing would preclude the members from starting a different voluntary association that serves the same purpose. This is why I am quite sure (but my knowledge on insolvency and bankruptcy practice in South Africa is almost non-existent beyond some preliminary research [which has left me fearful to say the least] on the Companies Act) that there is a distinction to be drawn in liquidating and winding up a voluntary association - whose constitution would provide what must occur with residual property - and winding up a company.

Frankly however the real issue should be to place ANCYL owned property - including intellectual property (if you'll mind the irony) - on the open market for auction and use those proceeds to pay out creditors and if there is a residual to pay it over in accordance with the constitution which I assume would see it being paid to the ANC. Of course if you put up ANCYL logos etc ... for auction the ANC will put in a bid and it really will be a case of seeing how much can be collected for the "personality" of the YL with the ANC likely to pay that amount out - putting the ANC into a more insolvent position ...
 
Liquidation is not in the pedi dictionary.. duh.
 
Paul Hjul said:
I do have a suspicion - IzZzy if you could please comment - that there may be a problem with the approach adopted by the court in that it both provisionally liquidates and sets course for the final sequestration of the league which sequestration could leave creditors without a person to institute claim against (the league having been sequestrated) and that voluntary associations are liquidated by the court with consequences on decisions taken by officers collectively to incur liabilities. Essentially if the court made any error it was in affording to much limitation on liability.
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Sorry, what? People are sequestrated, companies are liquidated. If concursis has arisen - creditors are free to prove their claims or not. Those that chose not to (because of the risk of a pay in) do not have a claim against the state that is recognisable or enforceable. That is what happens between provisional liquidation and final liquidation. Final liquidation only arises once the estate has been fully and finally dealt with.
 
Paul Hjul said:
./snip
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You are correct. Residual property of a not for profit company or an association not for gain would be dealt with in terms of the MOI/Constitution, which means usually donating it to another association having the same or similar objects. I doubt there is a residual here, but it would be a LOL if the residual assets of the ANCYL were donated to the DAYL.
 
Thankfully human capital is not considered an asset in this case...:p
 
IzZzy said:
With the ANCYL, its more a liability.
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Don't give them ideas. Next minute they'll be submitting a claim against their own estate on that basis.

"Eh, eh, eh, eh, Eeeeezzzzy says I em a credeetor..."
 
DJ... said:
Don't give them ideas. Next minute they'll be submitting a claim against their own estate on that basis.

"Eh, eh, eh, eh, Eeeeezzzzy says I em a credeetor..."
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Haha. I doubt the ANC wants a liquidator appointed for much longer, and would probably pay the R18m or so claimed. The stuff a liquidator might uncover would probably have some serious consequences ;)
 
http://www.timeslive.co.za/politics/2013/11/07/former-leaders-milked-the-ancyl-dry

Dishonest former ANC Youth League leaders had milked the organisation dry, its convenor Mzwandile Masina said on Thursday.

"We know as a matter of fact that the dishonest former leaders who milked the organisation and left it dry have now created other self-enriching schemes in the form of new political parties," he told reporters in Johannesburg.

He did not name expelled African National Congress Youth League president Julius Malema, who started and now leads the Economic Freedom Fighters.

"We are now left here to ponder how we will save the ANCYL from its problems that emanated as a result of lack of leadership at that particular point in time."

The ANCYL called on businesses and supporters to donate money to help pay its debt.

Masina said the next time the court called on the ANCYL to pay, it should be in a position to do so because of funds raised.

"We want to call upon good citizens of South Africa to help us contribute financially so we can rescue the organisation of [former president] Nelson Mandela.

"It's either we pay or we close shop," Masina said.

The ANCYL had set up an ad hoc committee consisting of its former presidents, treasurers general and lawyers to help.

They included former ANCYL presidents Malusi Gigaba and Fikile Mbalula, and former treasurers general Ignatius Jacobs and Pule Mabe.

Former ANCYL deputy president Ronald Lamola would be part of the legal team, with advocate Terry Motau SC.

"[They] have said they are willing to work with us hand-in-hand to go back to court so we can plead our case politically and legally," Masina said.
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Good - close up shop.

You owe money - there is no 'political' pleading that will suddenly make the debt disappar.
 
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