TWK Agriculture Ltd v NCT Forestry Co-operative Ltd and Others (8328/2004, 9765/2004)
TWK Agriculture Ltd v NCT Forestry Co-operative Ltd and Others (8328/2004, 9765/2004) [2006] ZAKZHC 17; 2006 (6) SA 20 (N) (4 April 2006)
The court held that the common law derivative action forms part of South African law and is available to members of co-operatives in appropriate circumstances. The plaintiff demonstrated that, due to the structure of CTC and the control exercised by the defendants, it would be futile to seek a resolution authorising CTC to institute action. The facts pleaded show that the defendants appropriated opportunities belonging to CTC, and the plaintiff, as a minority member, is entitled to pursue a derivative action to redress the wrong. The court rejected the argument that leave of court is required…
Source excerpt
- Derivative Action
- Fiduciary Duties
- Fraud On Minority
- Corporate Governance
- Co Operatives
- Minority Protection