Minister of Trade & Industry v Lesotho National Development Cooporation (C of A (CIV) 78 of 2019) [2020] LSCA 46 (30 October 2020)

Minister of Trade & Industry v Lesotho National Development Cooporation (C of A (CIV) 78 of 2019) [2020] LSCA 46 (30 October 2020)

The Court of Appeal held that s 8(7) of the LNDC Act requires only that the Minister form an opinion of unfitness and instruct the director to vacate office. The statute does not require a hearing or application of the audi alteram partem rule. The Minister's issuance of show cause letters and consideration of...

Source-derived case information.

Citation
[2020] LSCA 46
Parties
Appellant: Minister of Trade and Industry; Appellant: The Attorney General; Appellant: Lesotho National Development Corporation; Appellant: Acting Chief Executive Officer - LNDC; Respondent: Lesotho National Development Corporation Board of Directors; Respondent: Lebakeng Tigeli; Respondent: Makhetha Thaele; Respondent: Mampho Tjabane; Respondent: Lehlonholo Chefa; Respondent: Ntsiuoa Jaas; Respondent: Lefulesele Lebesa; Respondent: Mosito Ntema
Court
Court of Appeal
Jurisdiction
Lesotho
Case Number
C of A (CIV) 78 of 2019
Procedural Posture
Civil Appeal / Judgment on Appeal
Outcome
Appeal allowed; High Court decision set aside; consolidated applications dismissed with costs.
Legal Topics
Dismissal of Directors, Ministerial Powers, Audi Alteram Partem, Statutory Interpretation, Consolidation of Cases, Joinder of Parties
Source Language
en
Administrative Law Corporate Law Dismissal of Directors Ministerial Powers Audi Alteram Partem Statutory Interpretation Consolidation of Cases Joinder of Parties

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Parties

Minister of Trade and Industry

Appellant

The Attorney General

Appellant

Lesotho National Development Corporation

Appellant

Acting Chief Executive Officer - LNDC

Appellant

Lesotho National Development Corporation Board of Directors

Respondent

Lebakeng Tigeli

Respondent

Makhetha Thaele

Respondent

Mampho Tjabane

Respondent

Lehlonholo Chefa

Respondent

Ntsiuoa Jaas

Respondent

Lefulesele Lebesa

Respondent

Mosito Ntema

Respondent

Procedural Posture

Civil Appeal / Judgment on Appeal

  1. 1 Whether the Minister lawfully dismissed the LNDC Board of Directors under s 8(7) of the LNDC Act
  2. 2 Whether the audi alteram partem rule applied to the dismissal process
  3. 3 Whether the High Court erred in its interpretation of the Minister's statutory powers

Ratio Decidendi

The Court of Appeal held that s 8(7) of the LNDC Act requires only that the Minister form an opinion of unfitness and instruct the director to vacate office. The statute does not require a hearing or application of the audi alteram partem rule. The Minister's issuance of show cause letters and consideration of representations satisfied any procedural fairness. The High Court erred in finding the Minister's actions unlawful and in setting aside the dismissals.

Court Disposition

Appeal allowed; High Court decision set aside; consolidated applications dismissed with costs.

Orders

  • The appeal is dismissed with costs.
  • The order of the court a quo is set aside and substituted with: The application in CIV/APN/119/2017 and in CIV/APN/127/2017 as consolidated is dismissed with costs.