Ferro Industrial Products (Pty) Ltd v Mare and Another (01/13329) [2001] ZAGPHC 15 (14 June 2001)

Ferro Industrial Products (Pty) Ltd v Mare and Another (01/13329) [2001] ZAGPHC 15 (14 June 2001)

The court found that the shareholders' agreement the applicant sought to enforce was not the agreement referred to in the Trust Deed or the acceptance of shares by the first respondent. The first respondent was not a party to the shareholders' agreement entered into in June 2000, and therefore, the applicant could not enforce its terms, including the restraint of trade clause, against him. The point in limine raised by the first respondent's counsel was upheld, and the application was dismissed with costs.

Citation
[2001] ZAGPHC 15
Parties
Applicant: Ferro Industrial Products (Pty) Ltd; Respondent: Gabriel Stephanus Mare; Respondent: Vereguard (Pty) Ltd
Court
High Courts - Gauteng
Jurisdiction
South Africa
Judgment Date
14 June 2001
Case Number
01/13329
Procedural Posture
Urgent Application / Application for Interdict
Outcome
Application dismissed with costs.
Judges
Willis
Legal Topics
Restraint of Trade, Shareholders Agreement, Enforceability of Contracts
Commercial and Corporate Restraint of Trade Shareholders Agreement Enforceability of Contracts

Case Brief

Summary, issues, holding and outcome

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Parties

Ferro Industrial Products (Pty) Ltd

Applicant

Gabriel Stephanus Mare

Respondent

Vereguard (Pty) Ltd

Respondent

Procedural Posture

Urgent Application / Application for Interdict

Legal Issues

  1. 1 Whether the applicant can enforce the shareholders' agreement against the first respondent.
  2. 2 Whether the restraint of trade clause applies to the first respondent.

Ratio Decidendi

The court found that the shareholders' agreement the applicant sought to enforce was not the agreement referred to in the Trust Deed or the acceptance of shares by the first respondent. The first respondent was not a party to the shareholders' agreement entered into in June 2000, and therefore, the applicant could not enforce its terms, including the restraint of trade clause, against him. The point in limine raised by the first respondent's counsel was upheld, and the application was dismissed with costs.

Court Disposition

Application dismissed with costs.

Orders

  • The application is dismissed with costs.