Tati v Nkoka Training CC and Others (78429/2014) [2017] ZAGPPHC 901 (22 December 2017)

Tati v Nkoka Training CC and Others (78429/2014) [2017] ZAGPPHC 901 (22 December 2017)

The court found that the applicant, as a member of the close corporation, was entitled under section 50 of the Close Corporations Act to instruct attorneys to act on behalf of the corporation in proceedings against other members who breached their fiduciary duties. The applicant's authority was confirmed by the success of the prior application. The respondents' objections regarding mandate and locus standi were rejected as contrived and aimed at frustrating indemnification. The attorney and client bill of costs should be remitted to the taxing master for taxation, and the respondents are liable for costs in their personal capacities.

Citation
[2017] ZAGPPHC 901
Parties
Applicant: Paul Moeketsi Tati; Respondent: Nkoka Training CC; Respondent: Rian Venter; Respondent: Elizabeth Maria Venter; Respondent: The Taxing Master of the North Gauteng High Court
Court
North Gauteng High Court, Pretoria
Jurisdiction
South Africa
Judgment Date
22 December 2017
Case Number
78429/2014
Procedural Posture
Civil Application / Final Order
Outcome
Application granted. Declaratory order issued confirming applicant's authority. Attorney and client bill of costs remitted for taxation. Second and third respondents ordered to pay costs personally, jointly and severally.
Judges
TM Makgoka
Legal Topics
Close Corporations Act, Fiduciary Duties, Locus Standi, Attorney and Client Costs, Taxation of Costs
Commercial and Corporate Civil Procedure Close Corporations Act Fiduciary Duties Locus Standi Attorney and Client Costs Taxation of Costs

Case Brief

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Parties

Paul Moeketsi Tati

Applicant

Nkoka Training CC

Respondent

Rian Venter

Respondent

Elizabeth Maria Venter

Respondent

The Taxing Master of the North Gauteng High Court

Respondent

Procedural Posture

Civil Application / Final Order

Legal Issues

  1. 1 Whether the applicant was entitled to instruct attorneys to act on behalf of the close corporation under section 50 of the Close Corporations Act.
  2. 2 Whether the applicant had locus standi to seek the relief claimed.
  3. 3 Whether the attorney and client bill of costs should be remitted for taxation despite objections to mandate.

Ratio Decidendi

The court found that the applicant, as a member of the close corporation, was entitled under section 50 of the Close Corporations Act to instruct attorneys to act on behalf of the corporation in proceedings against other members who breached their fiduciary duties. The applicant's authority was confirmed by the success of the prior application. The respondents' objections regarding mandate and locus standi were rejected as contrived and aimed at frustrating indemnification. The attorney and client bill of costs should be remitted to the taxing master for taxation, and the respondents are liable for costs in their personal capacities.

Court Disposition

Application granted. Declaratory order issued confirming applicant's authority. Attorney and client bill of costs remitted for taxation. Second and third respondents ordered to pay costs personally, jointly and severally.

Orders

  • It is declared that the applicant was entitled to instruct Motlanthe Inc. to act on behalf of the first respondent in terms of section 50 of the Close Corporations Act 69 of 1984, in the application under case number 41550/2013.
  • The attorney and client bill of costs between the first respondent and Motlanthe Inc. is remitted to the fourth respondent, the taxing master, for taxation.