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South Africa decisions
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Bryan v Marcelle Props 118 CC and Others (24926/2018) [2021] ZAGPJHC 369 (13 May 2021)
The court held that the second respondent’s conduct was unfairly prejudicial and ordered him to exit the close corporation, allowing the applicant to buy his 75% interest.
Leitao v Easy Electric CC and Others (4164/2018) [2020] ZAMPMHC 22 (10 June 2020)
The applicant sought an order ending his close corporation membership and payment for his 30% interest. The court found no deadlock or just and equitable basis and dismissed the application.
Swarts and Others v Hart and Others (EL791/2018) [2019] ZAECELLC 19 (3 September 2019)
The court found that the applicants failed to establish any of the grounds for cessation of membership under section 36 of the Close Corporations Act. The main dispute regarding nominee shareholding had already been decided against the applicants in a previous judgment, and the remaining issues were management disagreements that could be resolved through the Association and Operational Agreements. Hart's insistence on strict compliance with these agreements was justified, and his conduct did not meet the threshold for removal. The application for referral to oral evidence was also dismissed a…
Source excerpt
Sediba Electrical CC and Others v Letswalo and Others (1134/2018) [2018] ZALMPPHC 54 (21 September 2018)
The court dismissed an urgent application to oust a close corporation member, finding only a minor fiduciary breach and no basis for drastic relief.
Madise v Maswikeng Transport CC and Others (22250/2018) [2018] ZAGPPHC 435 (18 May 2018)
The High Court dismissed an urgent bid to end a close corporation member’s interest, holding that the applicant had not proved grounds under section 36.
James v TVR Construction CC and Others (EL1604/12, ECD3621) [2014] ZAECELLC 3 (10 June 2014)
The court held that failure to pay a member’s loan account in a close corporation could be unfairly prejudicial conduct under section 49 and ordered payment.
Botha v George Switchboards CC and Another (11190/06) [2007] ZAWCHC 102 (23 February 2007)
The court granted provisional liquidation of a close corporation after finding an irretrievable deadlock between the members. A counter-application under section 36 failed.
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