Associated Chemicals Limited v Hill and Delamain Zambia and Ellis and Company (As Law Firm) (1998) S.J 7 (SC)

The Respondent in the Supreme Court of.Zambia ("Hill and Delamain Zambia Limited") had taken out Court Process ( Writ of Summons + Statement of Claim) to recover monies owed for services rendered at the instance and request of the Appellant in the Supreme Court of Zambia ("Associated Chemiclas Limited") .

The Crux of the Appellant's argument in the Supreme Court of Zambia was that due to a clause in the Shareholder Purchase Agreement (Associated Chemicals Limited) , The old shareholders(Two Patels) and no either the Company nor thr new shareholder (Mr Kilasa) were liable for this debt owed to the Respondent as the Agreement had an indemnify clause that stated the previous Shareholders would undertake to settle financial liabilities incurred prior to the sale of the Share.

This case therefore looked into the principals relating to the Legal Status of a Company and the difference between a Shareholder and a Company .
This is also a Landmark Judgement on Company Law in Zambia and is still good Law .

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