Volkwyn and Another v Fredericks (21184/2022) [2024] ZAWCHC 348 (5 November 2024)

Volkwyn and Another v Fredericks (21184/2022) [2024] ZAWCHC 348 (5 November 2024)

The Court found that the First Applicant was entitled to purchase the Respondent's member's interest and loan account in the CC at a fair value to be determined by an independent chartered accountant. The valuation must consider transformation objectives, requiring the appointment of a valuer from a previously disadvantaged group, and the CC's status as a small business. The costs of the valuation are to be borne by the CC and included in the valuation, while legal costs paid by the CC for the application are excluded from the valuation. Each party is to pay its own legal costs for the application and counterapplication. The Court rejected the parties' attempts to mutually appoint a...

Citation
[2024] ZAWCHC 348
Parties
Applicant: Washief Volkwyn; Applicant: The Network Computer Services Western Cape CC; Respondent: Elvina Fredericks
Court
Western Cape High Court, Cape Town
Jurisdiction
South Africa
Judgment Date
5 November 2024
Case Number
21184/2022
Procedural Posture
Urgent Application / Final Judgment on Urgent Application and Counterapplication
Outcome
Application granted. The First Applicant is directed to purchase the Respondent's member's interest and loan account in the CC at a fair value determined by an independent valuer. Each party to pay its own costs.
Judges
A Bhoopchand
Legal Topics
Member Interest Purchase, Valuation of Business, Transformation Objectives, Costs of Application
Commercial and Corporate Civil Procedure Member Interest Purchase Valuation of Business Transformation Objectives Costs of Application

Case Brief

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Parties

Washief Volkwyn

Applicant

The Network Computer Services Western Cape CC

Applicant

Elvina Fredericks

Respondent

Procedural Posture

Urgent Application / Final Judgment on Urgent Application and Counterapplication

Legal Issues

  1. 1 Whether the First Applicant is entitled to purchase the Respondent's member's interest in the CC.
  2. 2 How the fair value of the member's interest and loan account should be determined.
  3. 3 Who should bear the costs of the valuation and the application.

Ratio Decidendi

The Court found that the First Applicant was entitled to purchase the Respondent's member's interest and loan account in the CC at a fair value to be determined by an independent chartered accountant. The valuation must consider transformation objectives, requiring the appointment of a valuer from a previously disadvantaged group, and the CC's status as a small business. The costs of the valuation are to be borne by the CC and included in the valuation, while legal costs paid by the CC for the application are excluded from the valuation. Each party is to pay its own legal costs for the application and counterapplication. The Court rejected the parties' attempts to mutually appoint a...

Court Disposition

Application granted. The First Applicant is directed to purchase the Respondent's member's interest and loan account in the CC at a fair value determined by an independent valuer. Each party to pay its own costs.

Orders

  • The First Applicant is directed to purchase the Respondent's member's interest and loan account in the Second Applicant at a fair value as specified in paragraphs 2 to 9.
  • Valuation to be undertaken by a practising chartered accountant of not less than 10 years standing, nominated by the President or Chairman of the Cape Town Regional Association of SAICA, considering transformation and the CC's small business status.