Section 82(3) of the Companies Act provides for the deregistration of a company that has, inter alia, failed to file annual returns for two or more consecutive years. A deregistered company ceases to exist and any act performed whilst it is deregistered has no legal effect. Where, for example, a deregistered company enters into an immovable property sale agreement, the agreement will be void from the onset and unenforceable.
The Companies Act provides that interested persons may apply for such company’s restoration. Where restoration is effected in terms of section 82(4), the High Court has now held that acts performed by the company during the deregistration period, will retrospectively be validated.
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