The Standard Bank of South Africa Ltd v The Master of the High Court, Eastern Cape Division, and Others

Intramed (Pty) Ltd, a subsidiary of the Macmed group, was placed in liquidation following the collapse of Macmed, then regarded as South Africa’s largest commercial failure. Basil Brian Nel and Michael Leo De Villiers were appointed as joint liquidators of Intramed, while Nel was also a liquidator of Macmed and its other subsidiaries. Standard Bank, a major creditor of both Macmed and Intramed, applied to the Eastern Cape High Court for the removal of Nel and De Villiers as liquidators of Intramed. The application was based mainly on allegations that they lacked independence, favoured Macmed over Intramed, improperly supported and caused the admission of a R325 million claim by Macmed against Intramed arising from a complex financing arrangement known as the Peregrine structure, and misused Intramed’s funds to pay costs they had been ordered to pay personally. Standard Bank further complained of conflicts of interest arising from fee-sharing arrangements and Nel’s dual role as liquidator of both estates. The High Court dismissed the application, and Standard Bank appealed to the Supreme Court of Appeal.

The appeal was upheld. The order of the High Court was set aside and replaced with an order removing Nel and De Villiers as joint liquidators of Intramed (Pty) Ltd (in liquidation), reviewing and setting aside the Master’s decision not to reduce their remuneration, reducing their remuneration by five per cent, and ordering them to pay the costs of the application and appeal personally, jointly and severally.

The case is a leading authority on the duties, independence, and fiduciary obligations of liquidators in South African insolvency law. It underscores that liquidators must avoid conflicts of interest, especially where they serve in multiple related liquidations, and that courts will intervene decisively where liquidators favour one estate or creditor over another. It also confirms the courts’ willingness to review the Master’s decisions on remuneration and to impose personal cost consequences on delinquent liquidators.