Venter NO and Another v Silver Lakes Homeowners Association NPC (444994/2016)
Venter NO and Another v Silver Lakes Homeowners Association NPC (444994/2016) [2017] ZAGPPHC 11 (20 January 2017)
The court found that Rule 11.2, which restricts the number of proxies a member may hold, is inconsistent with section 58(1) of the Companies Act 71 of 2008, an unalterable provision that grants members the right to appoint any individual as proxy without limitation. Section 15(2)(d) prohibits any MOI provision or rule that restricts or limits such unalterable rights. The respondent's rule, whether interim or permanent, unlawfully restricted members' statutory rights and was therefore void. The court rejected arguments based on the necessity for governance, holding that statutory rights cannot…
Source excerpt
- Memorandum Of Incorporation
- Proxy Voting Rights
- Unalterable Provisions
- Companies Act Interpretation