Matthews and Others v Ituba Holdings (RF) (Pty) Ltd and Others (81151/2017) [2022] ZAGPPHC 632 (22 August 2022)

Matthews and Others v Ituba Holdings (RF) (Pty) Ltd and Others (81151/2017) [2022] ZAGPPHC 632 (22 August 2022)

The court found that the applicants had knowledge of their alleged entitlement to the 1% shareholding as early as October 2014, when the second respondent confirmed the promise via electronic message. The applicants failed to take action at that time, and their claim was not postponed by the subsequent litigation regarding the lottery license. The court held that prescription began to run when the applicants had the minimum facts necessary to institute proceedings, and that their claim had prescribed by the time the application was launched in November 2018. The plea of prescription was therefore upheld, and the application dismissed with costs.

Citation
[2022] ZAGPPHC 632
Parties
Applicant: Zolani Kgosietsile Matthews; Applicant: Zolani Kgosietsile Matthews, NO; Applicant: Vimtha Amichano Rajbansi, NO; Respondent: ITHUBA Holdings (RF) (Pty) Ltd; Respondent: Charmaine Mabuza; Respondent: Boy Erick Mabuza; Respondent: National Lotteries Commission
Court
North Gauteng High Court, Pretoria
Jurisdiction
South Africa
Judgment Date
22 August 2022
Case Number
81151/2017
Procedural Posture
Civil Application / Judgment
Outcome
Application dismissed with costs of two counsel.
Judges
N.P Mali
Legal Topics
Prescription Act, Shareholder Entitlement, Piercing Corporate Veil, Memorandum of Incorporation, Tender Pre Screening
Commercial and Corporate Civil Procedure Prescription Act Shareholder Entitlement Piercing Corporate Veil Memorandum of Incorporation Tender Pre Screening

Case Brief

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Parties

Zolani Kgosietsile Matthews

Applicant

Zolani Kgosietsile Matthews, NO

Applicant

Vimtha Amichano Rajbansi, NO

Applicant

ITHUBA Holdings (RF) (Pty) Ltd

Respondent

Charmaine Mabuza

Respondent

Boy Erick Mabuza

Respondent

National Lotteries Commission

Respondent

Procedural Posture

Civil Application / Judgment

Legal Issues

  1. 1 Whether the applicants' claim to a 1% share in Ithuba Holdings has prescribed under the Prescription Act.
  2. 2 Whether the applicants are entitled to have the 1% share transferred to them based on alleged verbal agreements and efforts in securing the lottery license.
  3. 3 Whether the court should pierce the corporate veil of Zamani Gaming (Pty) Ltd and Paytronix (Pty) Ltd to grant relief to the applicants.

Ratio Decidendi

The court found that the applicants had knowledge of their alleged entitlement to the 1% shareholding as early as October 2014, when the second respondent confirmed the promise via electronic message. The applicants failed to take action at that time, and their claim was not postponed by the subsequent litigation regarding the lottery license. The court held that prescription began to run when the applicants had the minimum facts necessary to institute proceedings, and that their claim had prescribed by the time the application was launched in November 2018. The plea of prescription was therefore upheld, and the application dismissed with costs.

Court Disposition

Application dismissed with costs of two counsel.

Orders

  • The application is dismissed with costs of two counsel.