Babtista N.O and Others v Quickstep 684 (Pty) Ltd and Others (38204/2022) [2024] ZAGPPHC 410 (2 May 2024)

Babtista N.O and Others v Quickstep 684 (Pty) Ltd and Others (38204/2022) [2024] ZAGPPHC 410 (2 May 2024)

The court found that the shareholders' meeting of 24 May 2022 was not properly convened in terms of the Companies Act and the Memorandum of Incorporation. The notice for the meeting was delivered one day short of the required period, and there was no waiver or ratification by all shareholders as required by section 62(2A) of the Act. The respondents' reliance on Millar v Natmed Defence (Pty) Ltd was rejected, with the court preferring the principle in Van Zyl v Nuco Chrome Bophuthatswana (Pty) Ltd and Others that improper notice renders the meeting and its resolutions invalid. Furthermore, the respondents' entitlement to act as shareholders was clouded by irregularities in the share...

Citation
[2024] ZAGPPHC 410
Parties
Applicant: Jose Luis Rodrigues Babtista N.O.; Applicant: Jaco van Rooyen N.O.; Applicant: Jorge Mendoca Velosa N.O. (Of the Best Trust Company (JHB) (Pty) Ltd); Respondent: Quickstep 684 (Pty) Ltd; Respondent: Edward Eduman Milne; Respondent: Paul Heslop; Respondent: Adriaan Combrinck; Respondent: Christopher Riley; Respondent: Gillian Claire Milne; Respondent: Sarah Heslop; Respondent: Wellness Property Company (Pty) Ltd; Respondent: Recem Trust; Respondent: J Calitz; Respondent: Peter Errol Bouwer; Respondent: J Ginder; Respondent: Martie Kuhn N.O.; Respondent: Proplan Holding; Respondent: Martin Van Achterbergh; Respondent: Eric Truebody; Respondent: Norman Nicholson; Respondent: Renee Hawkridge; Respondent: Environmental Management CC; Respondent: Misty Lake Trade and Investment 69; Respondent: 40/50 Investments CC; Respondent: Charmaine Phillip; Respondent: Lynn Hardy; Respondent: Dion Barnard Holding; Respondent: Jacobus Phillipus de Villiers; Respondent: Argontoula Pleaner Holding; Respondent: Willem Christoffel Van Wijk N.O.; Respondent: Petronella Jacoba van Wijk N.O.; Respondent: Robjohn CC; Respondent: Rainer Schuerger; Respondent: Jimoto Bushvel Investments; Respondent: Willem du Preez; Respondent: Jackie Howard; Respondent: Hillary Oats; Respondent: Nich Rosenberg; Respondent: Margaret Ann Callen and E Callen; Respondent: Pamela Ann Bouwer; Respondent: Bruno de Castro; Respondent: Toney Vey Family Trust; Respondent: Istermar Game Farm CC; Respondent: Ian Lawrence Peach N.O.; Respondent: Ivan James Roodt N.O.; Respondent: Jonathan Peach; Respondent: Anna-Mare Peacj N.O.; Respondent: JVH Krȕger N.O.; Respondent: Ivan James Emmett N.O.; Respondent: Combrinck Incorporated
Court
North Gauteng High Court, Pretoria
Jurisdiction
South Africa
Judgment Date
2 May 2024
Case Number
38204/2022
Procedural Posture
Special Motion / Judgment After Joinder and Service on All Interested Parties
Outcome
Application granted. The shareholders' meeting of 24 May 2022 and all resolutions adopted at that meeting are declared unlawful and invalid. Costs awarded against the second to fifth respondents, jointly and severally.
Judges
E van der Schyff
Legal Topics
Shareholders Meeting, Notice Requirements, Memorandum of Incorporation, Joinder of Parties, Invalid Resolutions
Commercial and Corporate Civil Procedure Shareholders Meeting Notice Requirements Memorandum of Incorporation Joinder of Parties Invalid Resolutions

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Parties

Jose Luis Rodrigues Babtista N.O.

Applicant

Jaco van Rooyen N.O.

Applicant

Jorge Mendoca Velosa N.O. (Of the Best Trust Company (JHB) (Pty) Ltd)

Applicant

Quickstep 684 (Pty) Ltd

Respondent

Edward Eduman Milne

Respondent

Paul Heslop

Respondent

Adriaan Combrinck

Respondent

Christopher Riley

Respondent

Gillian Claire Milne

Respondent

Sarah Heslop

Respondent

Wellness Property Company (Pty) Ltd

Respondent

Recem Trust

Respondent

J Calitz

Respondent

Peter Errol Bouwer

Respondent

J Ginder

Respondent

Martie Kuhn N.O.

Respondent

Proplan Holding

Respondent

Martin Van Achterbergh

Respondent

Eric Truebody

Respondent

Norman Nicholson

Respondent

Renee Hawkridge

Respondent

Environmental Management CC

Respondent

Misty Lake Trade and Investment 69

Respondent

40/50 Investments CC

Respondent

Charmaine Phillip

Respondent

Lynn Hardy

Respondent

Dion Barnard Holding

Respondent

Jacobus Phillipus de Villiers

Respondent

Argontoula Pleaner Holding

Respondent

Willem Christoffel Van Wijk N.O.

Respondent

Petronella Jacoba van Wijk N.O.

Respondent

Robjohn CC

Respondent

Rainer Schuerger

Respondent

Jimoto Bushvel Investments

Respondent

Willem du Preez

Respondent

Jackie Howard

Respondent

Hillary Oats

Respondent

Nich Rosenberg

Respondent

Margaret Ann Callen and E Callen

Respondent

Pamela Ann Bouwer

Respondent

Bruno de Castro

Respondent

Toney Vey Family Trust

Respondent

Istermar Game Farm CC

Respondent

Ian Lawrence Peach N.O.

Respondent

Ivan James Roodt N.O.

Respondent

Jonathan Peach

Respondent

Anna-Mare Peacj N.O.

Respondent

JVH Krȕger N.O.

Respondent

Ivan James Emmett N.O.

Respondent

Combrinck Incorporated

Respondent

Procedural Posture

Special Motion / Judgment After Joinder and Service on All Interested Parties

Legal Issues

  1. 1 Whether the shareholders' meeting of 24 May 2022 was properly called and convened.
  2. 2 Whether proper notice of the shareholders' meeting was given in terms of the Companies Act and the Memorandum of Incorporation.
  3. 3 Whether the second to fifth respondents were shareholders empowered to call a shareholders' meeting.

Ratio Decidendi

The court found that the shareholders' meeting of 24 May 2022 was not properly convened in terms of the Companies Act and the Memorandum of Incorporation. The notice for the meeting was delivered one day short of the required period, and there was no waiver or ratification by all shareholders as required by section 62(2A) of the Act. The respondents' reliance on Millar v Natmed Defence (Pty) Ltd was rejected, with the court preferring the principle in Van Zyl v Nuco Chrome Bophuthatswana (Pty) Ltd and Others that improper notice renders the meeting and its resolutions invalid. Furthermore, the respondents' entitlement to act as shareholders was clouded by irregularities in the share...

Court Disposition

Application granted. The shareholders' meeting of 24 May 2022 and all resolutions adopted at that meeting are declared unlawful and invalid. Costs awarded against the second to fifth respondents, jointly and severally.

Orders

  • The shareholders’ meeting of 24 May 2022 is declared unlawful and invalid.
  • The resolutions adopted at the shareholders’ meeting of 24 May 2022 are declared to be of no force and effect and set aside.