Get High (Pty) Ltd and another vs Gerrad and others (Commercial Case No. 08 of 2012) [2013] SCSC 14 (4 March 2013)

Get High (Pty) Ltd and another vs Gerrad and others (Commercial Case No. 08 of 2012) [2013] SCSC 14 (4 March 2013)

The plaint does not disclose a reasonable cause of action against the Seychelles Licensing Authority because section 39(1) of the Companies Act protects third parties dealing with company directors from liability for internal irregularities, such as the absence of a company resolution.

Citation
[2013] SCSC 14
Parties
Plaintiff: Get High (Pty) Ltd; Plaintiff: Eddie Westergreen; Defendant: Steve Gerrad; Defendant: Rukiyah Savy; Defendant: Elvis Uzice; Defendant: Seychelles Licensing Authority
Court
Supreme Court
Jurisdiction
Seychelles
Judgment Date
4 March 2013
Case Number
Commercial Case No. 08 of 2012
Procedural Posture
Commercial / Ruling on Preliminary Objection
Outcome
preliminary objection upheld; action against defendant no.4 dismissed with costs
Legal Topics
Company Director Authority, Third Party Protection, Striking Out Pleadings, Cause of Action
Source Language
English
Company Law Civil Procedure Company Director Authority Third Party Protection Striking Out Pleadings Cause of Action

Case Brief

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Parties

Get High (Pty) Ltd

Plaintiff

Eddie Westergreen

Plaintiff

Steve Gerrad

Defendant

Rukiyah Savy

Defendant

Elvis Uzice

Defendant

Seychelles Licensing Authority

Defendant

Procedural Posture

Commercial / Ruling on Preliminary Objection

Legal Issues

  1. 1 Whether the plaint discloses a reasonable cause of action against the Seychelles Licensing Authority (defendant no.4)
  2. 2 Whether failure to require a company resolution before registering a vehicle transfer creates liability for the authority

Ratio Decidendi

The plaint does not disclose a reasonable cause of action against the Seychelles Licensing Authority because section 39(1) of the Companies Act protects third parties dealing with company directors from liability for internal irregularities, such as the absence of a company resolution.

Court Disposition

preliminary objection upheld; action against defendant no.4 dismissed with costs

Orders

  • The action against the Seychelles Licensing Authority (defendant no.4) is dismissed with costs.