Cape Diary Co-Operative Ltd. v Ferreira (312/95) [1996] ZASCA 134; 1997 (2) SA 180 (SCA); [1997] 1 All SA 63 (A); (22 November 1996)

Cape Diary Co-Operative Ltd. v Ferreira (312/95) [1996] ZASCA 134; 1997 (2) SA 180 (SCA); [1997] 1 All SA 63 (A); (22 November 1996)

The Supreme Court of Appeal held that the statute governing the appellant co-operative does not preclude termination of membership by agreement between a member and the board of directors. The respondent's application for termination and the board's approval constituted a mutual agreement for summary termination, evidenced by the immediate repayment of share capital. The use of the standard form and the board's conduct indicated unequivocal consent to immediate termination, rather than reliance on the statutory procedure for unilateral resignation. Consequently, the respondent ceased to be a member before 1 November 1993 and was not entitled to the benefits conferred on members after that...

Citation
[1996] ZASCA 134
Parties
Appellant: Cape Dairy Co-Operative Limited; Respondent: Frank Wallace Ferreira
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
22 November 1996
Case Number
312/95
Procedural Posture
Civil Appeal / Appeal From Cape Provincial Division
Outcome
Appeal allowed. The respondent ceased to be a member before 1 November 1993 and is not entitled to the claimed benefits.
Judges
Van Heerden, Vivier, Marais, Olivier, Zulman
Legal Topics
Co Operatives Membership Termination, Contractual Consensus, Statutory Interpretation
Commercial and Corporate Co Operatives Membership Termination Contractual Consensus Statutory Interpretation

Case Brief

Summary, issues, holding and outcome

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Parties

Cape Dairy Co-Operative Limited

Appellant

Frank Wallace Ferreira

Respondent

Procedural Posture

Civil Appeal / Appeal From Cape Provincial Division

Legal Issues

  1. 1 Whether the respondent's membership in the appellant co-operative was terminated before 1 November 1993.
  2. 2 Whether the statute governing the co-operative precludes termination of membership by agreement between a member and the board of directors.
  3. 3 Whether the respondent and the board of directors in fact agreed to a summary termination of membership.

Ratio Decidendi

The Supreme Court of Appeal held that the statute governing the appellant co-operative does not preclude termination of membership by agreement between a member and the board of directors. The respondent's application for termination and the board's approval constituted a mutual agreement for summary termination, evidenced by the immediate repayment of share capital. The use of the standard form and the board's conduct indicated unequivocal consent to immediate termination, rather than reliance on the statutory procedure for unilateral resignation. Consequently, the respondent ceased to be a member before 1 November 1993 and was not entitled to the benefits conferred on members after that...

Court Disposition

Appeal allowed. The respondent ceased to be a member before 1 November 1993 and is not entitled to the claimed benefits.

Orders

  • The application is dismissed with costs.
  • Costs include the costs of two counsel.