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South Africa decisions
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Sheer and Others v Buddy Whiteman Engraving CC and Another (21/34078) [2022] ZAGPJHC 521 (5 August 2022)
The High Court granted final winding up of a close corporation after finding an irretrievable breakdown and deadlock between equal members.
Badenhorst v Absa Bank Limited and Others (6263/2018) [2018] ZAGPPHC 355 (8 February 2018)
The court found that the applicant, as a member of the close corporation, is entitled by law to participate in its management and oversight, which includes access to banking records and information held by the first respondent. The incapacity of the majority member left the applicant as the only operational member, and the existing arrangement with the bank excluded all members from direct access. The court accepted the medical evidence of incapacity and held that the applicant's fiduciary duties necessitate access. The respondents' opposition did not raise a genuine dispute of fact, and the…
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Lessing v Serengeti Golf and Wildlife Property Owners Association (31487/2012) [2014] ZAGPPHC 792 (17 September 2014)
The court found that the applicant had not made formal requests for the documents prior to launching the application. The respondent provided all requested documents after receiving the summons, and there was no evidence of prior requests as required by statute. The application was therefore premature, and the relief sought was moot since the respondent had already complied. The court dismissed the application with costs, concluding that no live controversy remained for adjudication.
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Communicare and Others v Khan and Another (12/2012) [2012] ZASCA 180; 2013 (4) SA 482 (SCA) (29 November 2012)
The Supreme Court of Appeal held that the right of members to vote at annual general meetings for the election of directors is a personal right, not a corporate right. The exclusion of retiring directors from voting was contrary to article 15 of the articles of association, which envisaged a seamless transition of directorships and did not require directors to vacate their membership status before the election. The court found that the respondents had locus standi to challenge the validity of the resolutions, as their voting rights were adversely affected by the exclusion of eligible voters.…
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