Why R100,000 in an attorney’s trust account failed to save a company from liquidation
A company’s R100,000 deposit in its attorney’s trust account did not stop Capitec Bank winning a final liquidation order against it.
A Gauteng High Court in Johannesburg has confirmed the winding-up of Virtual Holdings, a company that failed to pay Capitec Bank the remaining amount owed on a financed vehicle. The court found that the company had not made an unconditional offer to pay the outstanding R316,278.06, which included a R28,150.13 arrears from September 2025.
Capitec had sent a written demand on October 16, 2025, and served a section 345(1)(a) demand under the Companies Act of 1973 on November 27, 2025. Despite Virtual Holdings' director depositing R100,000 into the attorney's trust account on September 25, 2026, this did not satisfy the bank's claim. The court ruled that this deposit was conditional on Capitec determining the vehicle's value, which it had already done. No security was provided by the company, leading to the final winding-up order on July 20, 2026.
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