Mkhondo and Others v Boikanyo and Others (7597/2017) [2017] ZAGPPHC 1073 (6 December 2017)

Mkhondo and Others v Boikanyo and Others (7597/2017) [2017] ZAGPPHC 1073 (6 December 2017)

The court found that the continued shareholding of the first and second respondents placed the seventh respondent's JSE membership in jeopardy, as they were no longer fit and proper persons. The applicants' proposal for immediate transfer of shares, with valuation to follow through mediation or arbitration, was practical and addressed both parties' interests. The arrangement allowed for immediate divestment of the problematic shareholding while preserving the respondents' ability to seek a third-party buyer. The respondents' opposition to immediate transfer was rejected, as the arrangement placed them in the same position to find a buyer as if they retained the shares. The urgency of the...

Citation
[2017] ZAGPPHC 1073
Parties
Applicant: Vusimuzi Brian Mkhondo; Applicant: Michael Joseph Ray; Applicant: SA Stockbrokers (Pty) Ltd; Respondent: Yolanda Rebecca Boikanyo; Respondent: Mahlodi Tebogo Shakong; Respondent: Vusimuzi Brian Mkhondo N.O.; Respondent: Michael Joseph Ray N.O.; Respondent: Yolanda Rebecca Boikanyo N.O.; Respondent: Mahlodi Tebogo Shakong N.O.; Respondent: Lefika Securities (Pty) Ltd
Court
North Gauteng High Court, Pretoria
Jurisdiction
South Africa
Judgment Date
6 December 2017
Case Number
7597/2017
Procedural Posture
Urgent Application / Final Order on Urgent Application
Outcome
Application granted. The draft order is made an order of court.
Judges
Brand
Legal Topics
Companies Act Section 163, Shareholder Removal, Urgent Interdict, Transfer of Shares
Commercial and Corporate Civil Procedure Companies Act Section 163 Shareholder Removal Urgent Interdict Transfer of Shares

Case Brief

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Parties

Vusimuzi Brian Mkhondo

Applicant

Michael Joseph Ray

Applicant

SA Stockbrokers (Pty) Ltd

Applicant

Yolanda Rebecca Boikanyo

Respondent

Mahlodi Tebogo Shakong

Respondent

Vusimuzi Brian Mkhondo N.O.

Respondent

Michael Joseph Ray N.O.

Respondent

Yolanda Rebecca Boikanyo N.O.

Respondent

Mahlodi Tebogo Shakong N.O.

Respondent

Lefika Securities (Pty) Ltd

Respondent

Procedural Posture

Urgent Application / Final Order on Urgent Application

Legal Issues

  1. 1 Whether the shareholding of the first and second respondents in the seventh respondent should be terminated immediately.
  2. 2 Whether the shares should be transferred to the first and third applicants against payment of a reasonable price determined by the court.
  3. 3 Whether the matter was sufficiently urgent to warrant immediate relief.

Ratio Decidendi

The court found that the continued shareholding of the first and second respondents placed the seventh respondent's JSE membership in jeopardy, as they were no longer fit and proper persons. The applicants' proposal for immediate transfer of shares, with valuation to follow through mediation or arbitration, was practical and addressed both parties' interests. The arrangement allowed for immediate divestment of the problematic shareholding while preserving the respondents' ability to seek a third-party buyer. The respondents' opposition to immediate transfer was rejected, as the arrangement placed them in the same position to find a buyer as if they retained the shares. The urgency of the...

Court Disposition

Application granted. The draft order is made an order of court.

Orders

  • Relief sought in paragraph 7 of the notice of motion is postponed sine die, with costs reserved.
  • First and second respondents must sign all documents required to transfer their shares in the seventh respondent to the first applicant.