Solidarity and other applicants win case against the state over the appointment of provisional liquidators

Solidarity and the Concerned Insolvency Practitioners (Cipa) in January obtained a favourable ruling from the Western Cape High Court after having argued that the policy on the appointment of provisional liquidators was unconstitutional and was based only on an unlawful quota system. “If this appointment policy had been implemented it would have deprived employees of their right to appoint provisional liquidators based on competence, knowledge and experience as race would have been the sole deciding factor,” Dirk Groenewald, head of Solidarity’s Centre for Fair Labour Practices, said. The state, however, appealed against this ruling.

In April, the Western Cape High Court turned down the leave to appeal, ruling that the state didn’t have sound reasons to oppose its earlier judgment in this matter. In his reaction to this ruling, Groenewald said: “It once again confirms that the use of quotas based on race is not a lawful criterion for affirmative action.”

During court proceedings the state argued that the new appointment policy aimed to promote representation of previously disadvantaged persons in the profession of liquidators.

With this ruling by the Western Cape High Court Solidarity has yet again dealt government’s race based quota systems a blow.

This case forms a key part of the legal strategy Solidarity is following against the unfair implementation of affirmative action. Several lawsuits form part of this strategy.

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