Modise and Others v Sekgoro and Others (1898/2019) [2021] ZANCHC 13 (12 March 2021)

Modise and Others v Sekgoro and Others (1898/2019) [2021] ZANCHC 13 (12 March 2021)

The court found that Mr Sekgoro had a direct and substantial interest in the outcome, as the applicants had unlawfully removed him as director and shareholder of Kgaraga Investment Company. The CIPC inspector's report confirmed procedural irregularities in his removal and recommended his reinstatement. The applicants failed to comply with these recommendations and did not demonstrate any prejudice from the non-joinder of the company, as no relief was sought against it. The costs order against the applicants in their personal capacity was appropriate, given their conduct and the fact that Mr Sekgoro was represented by attorneys until shortly before the hearing. The applicants did not meet...

Citation
[2021] ZANCHC 13
Parties
Applicant: Samuel Motlapele Modise; Applicant: Nthabiseng Jaqueline Masao; Applicant: Teko Moreneng Schalk Padisho; Applicant: John Landella; Respondent: Daniël Mabe Sekgoro; Respondent: Commissioner: Companies & Intellectual Property Commission
Court
Northern Cape High Court, Kimberley
Jurisdiction
South Africa
Judgment Date
12 March 2021
Case Number
1898/2019
Procedural Posture
Leave to Appeal / Application for Leave to Appeal Following Judgment and Order Dated 30 October 2020.
Outcome
Application for leave to appeal dismissed; costs awarded against the applicants, limited to actual disbursements reasonably incurred, jointly and severally.
Judges
Phatshoane
Legal Topics
Director Removal, Company Records Amendment, Joinder, Costs Order, Locus Standi
Commercial and Corporate Civil Procedure Director Removal Company Records Amendment Joinder Costs Order Locus Standi

Case Brief

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Parties

Samuel Motlapele Modise

Applicant

Nthabiseng Jaqueline Masao

Applicant

Teko Moreneng Schalk Padisho

Applicant

John Landella

Applicant

Daniël Mabe Sekgoro

Respondent

Commissioner: Companies & Intellectual Property Commission

Respondent

Procedural Posture

Leave to Appeal / Application for Leave to Appeal Following Judgment and Order Dated 30 October 2020.

Legal Issues

  1. 1 Whether Mr Sekgoro had locus standi and followed correct procedures in vindicating his rights.
  2. 2 Whether non-joinder of the company and its directors/shareholders was fatal to the application.
  3. 3 Whether the costs order against the applicants in their personal capacity was appropriate.

Ratio Decidendi

The court found that Mr Sekgoro had a direct and substantial interest in the outcome, as the applicants had unlawfully removed him as director and shareholder of Kgaraga Investment Company. The CIPC inspector's report confirmed procedural irregularities in his removal and recommended his reinstatement. The applicants failed to comply with these recommendations and did not demonstrate any prejudice from the non-joinder of the company, as no relief was sought against it. The costs order against the applicants in their personal capacity was appropriate, given their conduct and the fact that Mr Sekgoro was represented by attorneys until shortly before the hearing. The applicants did not meet...

Court Disposition

Application for leave to appeal dismissed; costs awarded against the applicants, limited to actual disbursements reasonably incurred, jointly and severally.

Orders

  • The application for leave to appeal is dismissed.
  • The first to fourth applicants are to pay the costs of the application for leave to appeal limited to actual disbursements reasonably incurred, jointly and severally, the one paying the other to be absolved.