East Rock Trading 7 (Pty) Ltd and Another v Eagle Valley Granite (Pty) Ltd and Others (11/33767) [2011] ZAGPJHC 196 (23 September 2011)

Parties

Procedural Posture

Urgent Application / Interim Relief (part A) Pending Final Determination (part B)

Legal Issues

1. 1 Whether the application qualifies to be heard as urgent under Rule 6(12).
2. 2 Whether the applicants have established the requirements for an interim interdict.
3. 3 Whether the applicants have a prima facie right to the relief sought.

Ratio Decidendi

The court found that the applicants had sufficiently explained the delay in bringing the application and that, despite the delay, the matter remained urgent because the respondents intended to hold a meeting that could irreversibly affect the applicants' rights. The applicants established a prima facie right as shareholder and director to prevent the meeting and the passing of resolutions that would impact their interests. The court was satisfied that irreparable harm would result if the meeting proceeded, as reversing decisions taken would be impractical. The balance of convenience favoured the applicants, who would suffer prejudice if the interdict was not granted, while the respondents...

Court Disposition

Interim interdict granted; second and third respondents interdicted and restrained from proceeding with the directors' meeting and related resolutions; costs awarded against second and third respondents.

Orders

• Pending final determination of Part B, the Second and Third Respondents are interdicted and restrained from proceeding with the directors' meeting of the First Respondent convened for 14 September 2011, whether at the appointed time or at all.
• Second and Third Respondents are interdicted from requisitioning any board meeting of the First Respondent to table resolutions impacting the Second Applicant's directorship, use of the Navision Accounting System, location of company offices, or bank account signatories.