Sithole v Naude and Others; Ntiwane v Naude and Others (714/2021; 715/2021)
Sithole v Naude and Others; Ntiwane v Naude and Others (714/2021; 715/2021) [2021] ZAMPMBHC 58 (29 November 2021)
The court found that the removal of the applicants as directors was effected by the shareholder, Mawewe Communal Property Association, but the procedure prescribed by section 71(2) of the Companies Act was not followed. Specifically, the applicants were not given proper notice of the meeting and resolution, nor were they afforded a reasonable opportunity to make representations before the resolution was put to a vote. Section 71(1) and (2) of the Companies Act override any contrary provisions in the Memorandum of Incorporation or Shareholders' Agreement. As a result, the removal was unlawful…
Source excerpt
- Removal Of Directors
- Shareholders Rights
- Companies Act Compliance
- Board Composition
- Unlawful Suspension