ECC 458/70
Type
Case
Court
Egypt Court of Cassation
Jurisdiction
Egypt
Taxonomy
Companies & Corporate Bodies, General Company Law & Business Entities, Bankruptcy
Copyright
LexisNexis
Decision date
28 May 2001
Catchwords
Company – Bankruptcy – Share holder
The initial dispute involved a request that a company announce its bankruptcy. A key point in this case was that the bankruptcy of a company does not also mean the bankruptcy of a shareholder.
Background
A claimant filed a case against a company and requested the court order the company to announce its bankruptcy.
The company file a case against the defendant and requested the court order the claimant to announce his bankruptcy.
The court rejected the company's case and ruledthe company should announce its bankruptcy.
The company appealed the ruling before the court of appeal. The court upheld the appealed ruling.
Decision
The company appealed the ruling before the court of cassation and said in its grounds of appeal that the ruling had erred in the application of law and had insufficient evidence of causation. It stated releasing cheques does not mean someone should be considered as a merchant.