After a compliance order resulted in a Labour Court case, the closed business Jinghua Garments received a fine of R200'000 plus R500'000 in costs for breaking the Employment Equity law. The Jinghua Garments case was cited several times to show how organisations can be fined for contravening the Employment Equity Act. However, most citations miss that the company was already closed when the Labour Court issued the verdict. Over the last 26 years of consultation, almost 99% of managing directors threatened to close the business if summoned. In terms of legislation, once the organisation has contravened the employment equity act, the court case will continue whether the organisation exists. The person in charge of the organisation at the time of the infringement is the organisation's representative and responsible person as per the Companies Act. After a compliance order was issued and served on Jinghua Garments by the Department of Labour Inspector, the managing director sig