N and Others v Maluleke N.O and Others (5983/2021) [2022] ZAGPPHC 911 (25 November 2022)

N and Others v Maluleke N.O and Others (5983/2021) [2022] ZAGPPHC 911 (25 November 2022)

The court found that neither the first nor second applicant, nor any of the other applicants, had locus standi to seek the orders requested. The trust deed of the Legacy Trust provides that beneficiaries are only those selected by the trustees in their absolute discretion from a class of potential beneficiaries. The applicants were not selected as beneficiaries and thus have no direct legal interest in the affairs of the Trusts. Their previous roles as trustees and their inclusion as potential beneficiaries do not confer any rights to demand accounting or other relief. The resolution of 14 February 2022 was a valid exercise of the trustees' discretion and did not constitute an amendment...

Citation
[2022] ZAGPPHC 911
Parties
Applicant: Selina Mmazhapelo N[....]2; Applicant: Mpho Lucy N[....]2; Applicant: M C Ledigwane; Applicant: N Thabethe; Applicant: I Mudzwiri; Applicant: M Masina; Applicant: Dr M Poane; Applicant: P Phiri; Applicant: B Ndlovu; Applicant: R Resenga; Applicant: J Seshoka; Applicant: T Kehitlhitle; Applicant: T Mathebula; Respondent: C V Maluleke NO; Respondent: C P N[....]2 NO; Respondent: T Olivier NO; Respondent: E van Schalkwyk NO; Respondent: J Snyman NO; Respondent: C Schalk NO; Respondent: The Master of the High Court; Respondent: The Registrar of Deeds; Respondent: First National Bank
Court
North Gauteng High Court, Pretoria
Jurisdiction
South Africa
Judgment Date
25 November 2022
Case Number
5983/2021
Procedural Posture
Urgent Application / Interlocutory Application to Freeze Trust Bank Accounts and Compel Accounting, Pending Main Application for Removal of Trustees.
Outcome
Application dismissed with costs.
Judges
Millar
Legal Topics
Locus Standi, Trust Property Control Act, Joinder of Parties, Accounting by Trustees
Civil Procedure Land and Property Locus Standi Trust Property Control Act Joinder of Parties Accounting by Trustees

Case Brief

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Parties

Selina Mmazhapelo N[....]2

Applicant

Mpho Lucy N[....]2

Applicant

M C Ledigwane

Applicant

N Thabethe

Applicant

I Mudzwiri

Applicant

M Masina

Applicant

Dr M Poane

Applicant

P Phiri

Applicant

B Ndlovu

Applicant

R Resenga

Applicant

J Seshoka

Applicant

T Kehitlhitle

Applicant

T Mathebula

Applicant

C V Maluleke NO

Respondent

C P N[....]2 NO

Respondent

T Olivier NO

Respondent

E van Schalkwyk NO

Respondent

J Snyman NO

Respondent

C Schalk NO

Respondent

The Master of the High Court

Respondent

The Registrar of Deeds

Respondent

First National Bank

Respondent

Procedural Posture

Urgent Application / Interlocutory Application to Freeze Trust Bank Accounts and Compel Accounting, Pending Main Application for Removal of Trustees.

Legal Issues

  1. 1 Do the applicants have locus standi to seek orders against the Trusts?
  2. 2 Should the joinder of the 5th, 6th, and 9th respondents be granted?
  3. 3 Are the applicants entitled to an order freezing the bank account of the Trading Trust and compelling accounting and disclosure of financial and management reports?

Ratio Decidendi

The court found that neither the first nor second applicant, nor any of the other applicants, had locus standi to seek the orders requested. The trust deed of the Legacy Trust provides that beneficiaries are only those selected by the trustees in their absolute discretion from a class of potential beneficiaries. The applicants were not selected as beneficiaries and thus have no direct legal interest in the affairs of the Trusts. Their previous roles as trustees and their inclusion as potential beneficiaries do not confer any rights to demand accounting or other relief. The resolution of 14 February 2022 was a valid exercise of the trustees' discretion and did not constitute an amendment...

Court Disposition

Application dismissed with costs.

Orders

  • The application is dismissed.
  • The 1st to 13th applicants are ordered to pay the respondents' costs jointly and severally, the one paying the others to be absolved.