Gogga Tracking Solutions (Pty) Ltd v Vodacom Service Provider (Pty) Ltd (09/IR/Mar10) [2010] ZACT 38; [2010] 1 CPLR 115 (CT) (7 June 2010)

Gogga Tracking Solutions (Pty) Ltd v Vodacom Service Provider (Pty) Ltd (09/IR/Mar10) [2010] ZACT 38; [2010] 1 CPLR 115 (CT) (7 June 2010)

The Tribunal held that the shareholders' agreement between Gogga Tracking Solutions (Pty) Ltd's shareholders required unanimous consent for the institution of legal proceedings, including the present interim relief application. The applicant failed to obtain such consent, as Vodacom Ventures (Pty) Ltd, a significant shareholder, expressly withheld its approval and opposed the application. The director's resolution relied upon by the applicant was insufficient and did not override the shareholders' agreement. The Tribunal found no evidence or averment that the relevant clause of the shareholders' agreement formed part of a prohibited practice or was designed to frustrate access to the...

Citation
[2010] ZACT 38
Parties
Applicant: Gogga Tracking Solutions (Pty) Ltd; Respondent: Vodacom Service Provider (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
7 June 2010
Case Number
09/IR/Mar10
Procedural Posture
Urgent Application / Interim Relief Application; Point in Limine Regarding Authorisation to Institute Proceedings
Outcome
Application struck from the Tribunal's roll due to lack of proper authorisation.
Judges
Takalani Madima, Lawrence Reyburn, Andreas Wessels
Legal Topics
Shareholders Agreement, Abuse of Dominance, Margin Squeeze, Interim Relief, Authorisation to Litigate
Commercial and Corporate Competition Law Shareholders Agreement Abuse of Dominance Margin Squeeze Interim Relief Authorisation to Litigate

Case Brief

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Parties

Gogga Tracking Solutions (Pty) Ltd

Applicant

Vodacom Service Provider (Pty) Ltd

Respondent

Procedural Posture

Urgent Application / Interim Relief Application; Point in Limine Regarding Authorisation to Institute Proceedings

Legal Issues

  1. 1 Whether the applicant was properly authorised to institute interim relief proceedings in terms of section 49C of the Competition Act.
  2. 2 Whether the shareholders' agreement required unanimous consent for litigation and whether such consent was obtained.
  3. 3 Whether a conflict of interest between shareholders negates the requirement for unanimous authorisation under the agreement.

Ratio Decidendi

The Tribunal held that the shareholders' agreement between Gogga Tracking Solutions (Pty) Ltd's shareholders required unanimous consent for the institution of legal proceedings, including the present interim relief application. The applicant failed to obtain such consent, as Vodacom Ventures (Pty) Ltd, a significant shareholder, expressly withheld its approval and opposed the application. The director's resolution relied upon by the applicant was insufficient and did not override the shareholders' agreement. The Tribunal found no evidence or averment that the relevant clause of the shareholders' agreement formed part of a prohibited practice or was designed to frustrate access to the...

Court Disposition

Application struck from the Tribunal's roll due to lack of proper authorisation.

Orders

  • The matter is struck from the Tribunal's roll.
  • No decision is made regarding the application for postponement.