Less than a month after Bosasa announced it was entering voluntary liquidation, it has turned to the courts to have that decision reversed, claiming it had been given bad advice.
The directors of African Global Operations, the company formerly known as Bosasa, filed an urgent application in the High Court in Johannesburg.
The company started its collapse when former chief operations officer Angelo Agrizzi testified at the Zondo commission of inquiry.
The decision to liquidate was taken after the company’s banks announced they would close its accounts at the end of last month, citing reputational risk.
In an affidavit, Bosasa board chairman Johannes Gumede said the board did not properly read the legal documents prepared to it by a legal consultant.
Gumede said the consultant did not take the directors through the document and merely referred to where they were required to sign, which they duly did.
He said in hindsight, they were clearly misguided but he explained they were under pressure to find a solution after the banks had decided to close their accounts.
The board must first convince the court that the matter is urgent for it to be heard.
The liquidators, which have already been appointed, removed assets from the firm’s premises and started the process of winding down the company.
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