Dickson and his wife Brenda Moyo own the entire share capital of Vanhukwavo (Pvt) Ltd, a company duly incorporated and operating in Zimbabwe since 2000. The company manufactures children’s clothing both for the domestic and export market. For the first six years since incorporation, the company was a huge success, but in the last two years, its fortunes have nosedived because of the dire economic situation facing the country. The company owes a lot of money to Machira (Pvt) Ltd, a supplier of yarn and other products used in the manufacture of clothing. The supplier is threatening to seize a house and a prestigious car, which are owned by Dickson and Brenda Moyo in their personal capacities. In order to manage a very bad financial situation, the company is now involved in smuggling activities across the borders with Mozambique and Zambia. The authorities seek to make Dickson and Brenda personally liable for the company’s illegal activities.Required:In relation to company law, explain the likely attitude of the courts towards:
(b) the proposed personal liability of the directors for the company’s illegal activities. (5 marks)
