A.H v A.H and Another (52044/2013) [2014] ZAGPPHC 374 (16 May 2014)

A.H v A.H and Another (52044/2013) [2014] ZAGPPHC 374 (16 May 2014)

The court found that both parties had engaged in conduct that could prejudice the interests of the close corporation and each other. Despite deficiencies in the papers and factual disputes, Section 49 of the Close Corporation Act allows the court to intervene to prevent further prejudice and regulate the affairs of the corporation. The court determined that it was just and equitable to prohibit both parties from making withdrawals from the corporation's account, except in the normal course of business, until the divorce proceedings are finalised. The court also ordered that the accounting officers must authorise all payments as being in the normal course of business and that the first...

Citation
[2014] ZAGPPHC 374
Parties
Applicant: A. H.; Respondent: A. H.; Respondent: Loskop Plastiek Pype CC
Court
North Gauteng High Court, Pretoria
Jurisdiction
South Africa
Judgment Date
16 May 2014
Case Number
52044/2013
Procedural Posture
Urgent Application / Final Interdict and Counter Application
Outcome
Both parties are prohibited from making withdrawals from the second respondent's account, except in the normal course of business, until the divorce is adjudicated. The first respondent is granted access to accounting records. Each party pays their own costs.
Judges
De Vries
Legal Topics
Close Corporation Member Dispute, Final Interdict, Forensic Audit, Unlawful Withdrawals
Commercial and Corporate Civil Procedure Close Corporation Member Dispute Final Interdict Forensic Audit Unlawful Withdrawals

Case Brief

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Parties

A. H.

Applicant

A. H.

Respondent

Loskop Plastiek Pype CC

Respondent

Procedural Posture

Urgent Application / Final Interdict and Counter Application

Legal Issues

  1. 1 Whether the applicant is entitled to a final interdict prohibiting the first respondent from making unauthorised payments from the second respondent's account.
  2. 2 Whether both parties should be restrained from dealing with the assets and funds of the second respondent except in the normal course of business.
  3. 3 Whether a forensic audit of the second respondent should be ordered.

Ratio Decidendi

The court found that both parties had engaged in conduct that could prejudice the interests of the close corporation and each other. Despite deficiencies in the papers and factual disputes, Section 49 of the Close Corporation Act allows the court to intervene to prevent further prejudice and regulate the affairs of the corporation. The court determined that it was just and equitable to prohibit both parties from making withdrawals from the corporation's account, except in the normal course of business, until the divorce proceedings are finalised. The court also ordered that the accounting officers must authorise all payments as being in the normal course of business and that the first...

Court Disposition

Both parties are prohibited from making withdrawals from the second respondent's account, except in the normal course of business, until the divorce is adjudicated. The first respondent is granted access to accounting records. Each party pays their own costs.

Orders

  • The applicant and first respondent are prohibited from making any withdrawals from the account of the second respondent, other than in the normal course of business, until adjudication of the divorce under case number 6511/2012.
  • The accounting officers of the second respondent must authorise all payments as being in the normal course of business.