South Africa Case Law

Basotho Meat Enterprise v Falcodor 199 cc t/a Iceburg Trading N.O and 2 others (847/2024)

Basotho Meat Enterprise v Falcodor 199 cc t/a Iceburg Trading N.O and 2 others (847/2024) [2024] ZAFSHC 268 (27 August 2024)

Court

Free State High Court, Bloemfontein

Case number

847/2024

Judge

Gusha AJ

The court found that Mr. Khethisa, acting as a shareholder and relying on a power of attorney from another shareholder, lacked the necessary locus standi to institute proceedings on behalf of the applicant company. Both South African and Lesotho company law require that the business and affairs of a company be managed by its board of directors, and only the board may authorize legal proceedings. The prior court order did not confer personal authority on Mr. Khethisa, but merely permitted the applicant company to institute proceedings. The power of attorney was limited to representation at a s…

Source excerpt

• Locus Standi
• Company Directors Authority
• Declaratory Relief
• Attorney Client Costs

Islandsite Investments (Pty) Ltd v The National Director of Public Prosecutions and Others (894/2022)

Islandsite Investments (Pty) Ltd v The National Director of Public Prosecutions and Others (894/2022) [2023] ZASCA 166; 2024 (5) SA 20 (SCA) (1 December 2023)

Court

Supreme Court of Appeal

Case number

894/2022

Judges

Gorven, Mothle, Meyer, Kathree-Setiloane, Unterhalter

The SCA held that business rescue practitioners, not directors, control company litigation affecting company property during business rescue, and dismissed the appeal.

• Business Rescue
• Company Directors Authority
• Restraint Order
• Prevention Of Organised Crime Act
• Rule 7 Authority Dispute
• Business-rescue

Aerterno Investments 215 (Pty) Ltd v Galaxy Minerals (Pty) Ltd and Others (15527/08)

Aerterno Investments 215 (Pty) Ltd v Galaxy Minerals (Pty) Ltd and Others (15527/08) [2011] ZAKZPHC 38 (13 May 2011)

Court

Kwazulu-Natal High Court, Pietermaritzburg

Case number

15527/08

Judge

Murugasen

High Court held the sale was not binding on the company because the second defendant lacked authority, but ordered him to repay the R1 million purchase price.

• Alienation Of Land Act
• Company Directors Authority
• Ostensible Authority
• Unjust Enrichment
• Specific Performance
• Section 228 Companies Act

Kernsig 17 (Edms) Bpk v ABSA Bank Beperk (11492/2008)

Kernsig 17 (Edms) Bpk v ABSA Bank Beperk (11492/2008) [2008] ZAWCHC 110 (30 October 2008)

Court

Western Cape High Court, Cape Town

Case number

11492/2008

Judge

Meer

The High Court dismissed an application to cancel mortgage bonds, finding material disputes over whether the company authorised a loan secured by the bonds.

• Company Directors Authority
• Mortgage Bond Cancellation
• Onus Of Proof
• Motion Proceedings
• Final Interdict
• Sale Of Shares