Tsikoane v Tsikoane (CCA/0017/2019) [2023] LSHC 23 (4 May 2023)

Tsikoane v Tsikoane (CCA/0017/2019) [2023] LSHC 23 (4 May 2023)

There is a deadlock in the management of the company due to irretrievable breakdown of trust and confidence among shareholders, making it impossible to conduct business for their benefit; judicial dissolution is warranted under section 171(b)(i) of the Companies Act 2011.

Citation
[2023] LSHC 23
Parties
1st Applicant: Dr Tumelo Tsikoane; 2nd Applicant: 'Malineo Tsikoane; 1st Respondent: Topollo Tsikoane; 2nd Respondent: Tobatsi Enterprise (Pty) Ltd; 3rd Respondent: Registrar of Companies; 4th Respondent: The Master of the High Court; 5th Respondent: Standard Lesotho Bank; 6th Respondent: Attorney General
Court
High Court
Jurisdiction
Lesotho
Judgment Date
4 May 2023
Case Number
CCA/0017/2019
Procedural Posture
Company Dissolution Application / Judgment After Opposed Motion
Outcome
Application for dissolution of the company is granted.
Legal Topics
Judicial Dissolution, Deadlock in Management, Shareholder Disputes
Source Language
English
Company Law Judicial Dissolution Deadlock in Management Shareholder Disputes

Case Brief

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Parties

Dr Tumelo Tsikoane

1st Applicant

'Malineo Tsikoane

2nd Applicant

Topollo Tsikoane

1st Respondent

Tobatsi Enterprise (Pty) Ltd

2nd Respondent

Registrar of Companies

3rd Respondent

The Master of the High Court

4th Respondent

Standard Lesotho Bank

5th Respondent

Attorney General

6th Respondent

Procedural Posture

Company Dissolution Application / Judgment After Opposed Motion

Legal Issues

  1. 1 Whether a deadlock exists in the management of the company justifying judicial dissolution under section 171(b)(i) of the Companies Act 2011
  2. 2 Whether the relationship among shareholders has irretrievably broken down such that the company can no longer be run for their benefit

Ratio Decidendi

There is a deadlock in the management of the company due to irretrievable breakdown of trust and confidence among shareholders, making it impossible to conduct business for their benefit; judicial dissolution is warranted under section 171(b)(i) of the Companies Act 2011.

Court Disposition

Application for dissolution of the company is granted.

Orders

  • The 2nd respondent (Tobatsi Enterprise (Pty) Ltd) is dissolved.
  • Each party to bear its own costs.