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AYO Technology: How do you stop a company from being st...


The obvious recent case in point is AYO Technology, which suffered a 36% revenue decline in the half-year to February, plunging the company into a loss-making situation. But it then went ahead and calmly declared a dividend 86% higher than its previous dividend, which will cost the company around R200-million. 
To me, the first question here is whether this constitutes reckless trading as defined by section 22(1) of the Companies Act. The section says: “A company must not carry on its business recklessly, with gross negligence, with intent to defraud any person or for any fraudulent purpose.” If it does, directors become personally liable.  ....

Wallace Mgoqi , Parliamentary Finance Committee , Mpati Commission , Public Investment Commission , United Kingdom Based , African Equity Empowerment Investments , Loss Statement , Labour Relations Act , பாராளுமன்றம் நிதி குழு , பொது முதலீடு தரகு , ஒன்றுபட்டது கிஂக்டம் அடிப்படையிலானது , இழப்பு அறிக்கை , தொழிலாளர் உறவுகள் நாடகம் ,