Independant Regulatory Board for Auditors and Others v East Rand Member District of Chartered Accountants (64848/19 ; 46298/20) [2022] ZAGPPHC 994 (15 August 2022)

Independant Regulatory Board for Auditors and Others v East Rand Member District of Chartered Accountants (64848/19 ; 46298/20) [2022] ZAGPPHC 994 (15 August 2022)

The court found that most grounds for leave to appeal did not have reasonable prospects of success. The imposition of the percentage fee model for Category C auditors was ultra vires the enabling Act, and the applicants failed to show that the court erred in this finding. The remedy granted was just and equitable,...

Source-derived case information.

Citation
[2022] ZAGPPHC 994
Parties
Applicant: Independent Regulatory Board for Auditors; Applicant: Chairperson of the Independent Regulatory Board for Auditors; Applicant: Chief Executive Officer of the Independent Regulatory Board for Auditors; Respondent: East Rand Member District of Chartered Accountants
Court
North Gauteng High Court, Pretoria
Jurisdiction
South Africa
Judgment Date
15 August 2022
Case Number
64848/19 ; 46298/20
Procedural Posture
Leave to Appeal / Application for Leave to Appeal Following Judgment on Administrative Review
Outcome
Leave to appeal is granted only on the ground relating to the obligation to consult; all other grounds are refused.
Judges
Janse Van Nieuwenhuizen
Legal Topics
Ultra Vires, Consultation Obligation, Administrative Action Review, Fee Regulation, Remedies Under Paja
Administrative Law Commercial and Corporate Ultra Vires Consultation Obligation Administrative Action Review Fee Regulation Remedies Under Paja

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Parties

Independent Regulatory Board for Auditors

Applicant

Chairperson of the Independent Regulatory Board for Auditors

Applicant

Chief Executive Officer of the Independent Regulatory Board for Auditors

Applicant

East Rand Member District of Chartered Accountants

Respondent

Procedural Posture

Leave to Appeal / Application for Leave to Appeal Following Judgment on Administrative Review

Legal Issues

  1. 1 Whether the imposition of a percentage fee model for Category C registered auditors was ultra vires the enabling Act.
  2. 2 Whether the applicants were obliged to consult before implementing fee changes.
  3. 3 Whether the administrative action was unlawful and what remedy is just and equitable.

Ratio Decidendi

The court found that most grounds for leave to appeal did not have reasonable prospects of success. The imposition of the percentage fee model for Category C auditors was ultra vires the enabling Act, and the applicants failed to show that the court erred in this finding. The remedy granted was just and equitable, considering the financial position of the applicant and the default position under NERSA. The Rule 16A notice was sufficiently particular, and the delay in instituting review proceedings was properly addressed. The obligation to consult was the only ground with reasonable prospects of success, and leave to appeal was granted solely on this issue. The cost order was not open to...

Court Disposition

Leave to appeal is granted only on the ground relating to the obligation to consult; all other grounds are refused.

Orders

  • Leave to appeal to the Supreme Court of Appeal is granted on the obligation to consult as set out in paragraphs 21 to 24 of the application for leave to appeal.
  • Costs to be costs in the appeal.