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Semlex Group placed under provisional liquidation

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Semlex Group Eswatini promised to invest over E800 million in technology that would make the issuance of IDs and passports easier. (Semlex website)
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MBABANE – Semlex Group Eswatini (PTY) LTD, the model software development, production and engineering company, is threatened with closure.

This comes after the High Court issued an order that it should be placed under provisional liquidation.

Provisional liquidation is a temporary court order issued when a company appears unable to pay its debts. It places the company under the control of a provisional liquidator to safeguard assets, while the court considers whether the company should be finally wound up.

Semlex Group Eswatini (PTY) LTD is the company that launched itself in Eswatini, promising to set up its African headquarters and production plant at the Royal Science and Technology Park in 2024. It promised to invest E800 million in Eswatini.

The company’s registered scope of business includes software development, systems engineering and financial advisory services.

Its memorandum of association, endorsed in June 2023, also lists its capacity to act as an investment trust and manage portfolios. The company’s directors are listed as Melusi Sukati and Celani Dlamini.

According to court papers, SV Mdladla & Associates approached the High Court on an ex parte basis, arguing that Semlex Group Eswatini is in a precarious financial position and unable to meet its financial obligations.

The Master of the High Court has been cited as the second respondent, while the Attorney General’s Office is the third respondent. The allegations made against Semlex Group Eswatini are yet to be tested in a court of law. The court ordered that Semlex Group Eswatini (Pty) Ltd be wound up in terms of Sections 287 (d), 288 (a), and 289 (1) (b) of the Companies Act 2009. These sections define when a company is considered unable to pay its debts, which can be grounds for liquidation. Section 288(a) states that a company is deemed unable to pay its debts if it owes a creditor over E5 000 and has not paid, secured or compounded the debt within 21 days of receiving a demand.

This action follows the company’s alleged inability to pay debts that are currently due and payable.

As part of the ruling, Tobias Kamugisha, an experienced liquidator, was appointed as the provisional liquidator dative.

 Wiseman Dlamini, the Deputy Sheriff for the Hhohho Region, was appointed to effect service and prepare an inventory of the first respondent’s property.

*…

Liquidator to investigate affairs, assets, liabilities

MANZINI – S.V. Mdladla and Associates is confident that the immediate liquidation of Semlex Group Eswatini will enable a liquidator to properly investigate the affairs, assets and liabilities of the company.

This, the law firm states, will assist in the equitable distribution of the residue thereof to all creditors in their order of legal preference.

The founding affidavit by Modicai Donga states that liquidating Semlex will also enable the liquidator to more readily collect any debts due and payable to the law firm.

“It will also prevent Semlex from incurring further debt in the course of ordinary business activities, thereby increasing its liabilities to the obvious detriment of not only the law firm, but also other creditors,” Donga states.

He says it will also prevent the tech company from secretly disposing of any company assets in an attempt to escape its obligations to its creditors.

S.V. Mdladla and Associates applied for the appointment of Tobias Kamugisha, an experienced liquidator, arguing that he is a fit and proper person to be appointed as a provisional liquidator of Semlex.

This is pending the appointment of a liquidator by the master of the High and/or his confirmation as such by the Master. The law firm says Kamugisha has availed himself for such an appointment.

*Full article available on Pressreader*

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