South Africa Case Law

Swarts and Others v Hart and Others (EL791/2018)

Swarts and Others v Hart and Others (EL791/2018) [2019] ZAECELLC 19 (3 September 2019)

Court

Eastern Cape High Court, East London Local Court

Case number

EL791/2018

Judge

J.E Smith

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

• Close Corporations Act Section 36
• Cessation Of Membership
• Just And Equitable Removal
• Corporate Governance
• Shareholder Disputes

Madise v Maswikeng Transport CC and Others (22250/2018)

Madise v Maswikeng Transport CC and Others (22250/2018) [2018] ZAGPPHC 435 (18 May 2018)

Court

North Gauteng High Court, Pretoria

Case number

22250/2018

Judge

N Kollapen

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.

• Close Corporations Act Section 36
• Deadlock Between Members
• Cessation Of Membership
• Unauthorised Payments
• Onus Of Proof
• Urgent Application Procedure