Cilliers v LA Concorde Holdings Limited and Others (23029/2016)
Cilliers v LA Concorde Holdings Limited and Others (23029/2016) [2018] ZAWCHC 68; 2018 (6) SA 97 (WCC) (14 June 2018)
The court held that Section 164 of the Companies Act, read with Section 115(8), confers appraisal rights on dissenting minority shareholders of a holding company when its subsidiary disposes of all or the greater part of its assets or undertaking, provided the transaction meets the requirements of Section 115(2)(b). The statutory language is clear and unambiguous, and the legislative intent is to protect minority shareholders by granting them the right to exit at fair value. The court rejected the respondents' restrictive interpretation and found that both the disposing entity and the holding…
Source excerpt
- Shareholder Appraisal Rights
- Minority Protection
- Companies Act 71 Of 2008
- Fundamental Transactions
- Statutory Exit Rights