South Africa Case Law

Spar Group Limited and Others v Twelve Gods Supermarket (Pty) Ltd and Others (1100/2022)

Spar Group Limited and Others v Twelve Gods Supermarket (Pty) Ltd and Others (1100/2022) [2025] ZASCA 7; 2025 (3) SA 137 (SCA) (30 January 2025)

Court

Supreme Court of Appeal

Case number

1100/2022

Judges

Mabindla-Boqwana, Kgoele, Baartman, Dolamo, Masipa

The Supreme Court of Appeal held that the credit facilities agreement between SPAR and the Giannacopoulos Group constituted an ongoing contractual relationship, not a series of discrete offers. The discretion to vary credit terms under clause 5 was subject to the arbitrio boni viri standard, requiring SPAR to act reasonably, honestly, and for a legitimate purpose. The evidence showed that SPAR's reasons for altering the credit and drop shipment terms—alleged financial instability and compliance issues—were not substantiated and did not justify the changes. The timing and nature of the alterat…

Source excerpt

• Contractual Discretion
• Arbitrio Boni Viri
• Variation Of Contract
• Credit Facilities
• Good Faith
• Termination Of Membership

Madyibi and Another v Minister of Water and Sanitation and Others (939/2020)

Madyibi and Another v Minister of Water and Sanitation and Others (939/2020) [2024] ZAECMKHC 126 (19 November 2024)

Court

Eastern Cape High Court, Makhanda

Case number

939/2020

Judge

Zono AJ

The High Court dismissed a review challenging the termination of Amatola Water Board memberships, finding the appointments had not complied with statutory nomination requirements.

• Legality Of Administrative Action
• Water Services Act
• Board Appointments
• Termination Of Membership
• Administrative-law
• Legality

Spar Group Limited and Others v Twelve Gods Supermarket (Pty) Ltd and Others (AR31/2021 and AR32/2021)

Spar Group Limited and Others v Twelve Gods Supermarket (Pty) Ltd and Others (AR31/2021 and AR32/2021) [2022] ZAKZPHC 29 (7 July 2022)

Court

Kwazulu-Natal High Court, Pietermaritzburg

Case number

AR31/2021 and AR32/2021

Judges

Moodley, Radebe, Bezuidenhout

The Full Court held that Spar had expressly agreed to convene a hearing before terminating the respondents' membership, and that procedural fairness was required. The respondents did not repudiate the agreement to participate in a hearing; their conduct was consistent with seeking a fair process. Spar's failure to hold the hearing and its subsequent termination of membership was invalid and unlawful. The second set of termination notices, purportedly relying on a clause allowing termination without reason, was also invalid because the agreement to hold a hearing encompassed all grounds for te…

Source excerpt

• Termination Of Membership
• Contractual Repudiation
• Arbitrio Boni Viri
• Credit Facility Variation
• Natural Justice
• Memorandum Of Incorporation

Lakhanya Logistics CC and Others v Booi and Another (6569/2019)

Lakhanya Logistics CC and Others v Booi and Another (6569/2019) [2020] ZAGPPHC 475 (4 September 2020)

Court

North Gauteng High Court, Pretoria

Case number

6569/2019

Judge

Fabricius

The High Court dismissed an application to terminate a close corporation member’s membership, finding the founding papers inadequate and the later amendments improper.

• Close Corporation Membership
• Termination Of Membership
• Locus Standi
• Amendment Of Pleadings
• Close-corporation-membership
• Termination-of-membership

South African Municipal Workers' Union National Provident Fund v Umzimkhulu Local Municipality and Others (297/2018)

South African Municipal Workers' Union National Provident Fund v Umzimkhulu Local Municipality and Others (297/2018) [2019] ZASCA 41 (29 March 2019)

Court

Supreme Court of Appeal

Case number

297/2018

Judges

Lewis, Tshiqi, Swain, Van der Merwe, Dlodlo

The Supreme Court of Appeal held that rule 3.2.1 of the Fund unambiguously prohibits members from withdrawing from the Fund while remaining in service with the Municipality. Termination of membership and transfer of benefits can only occur upon cessation of service, as provided by rule 3.2.2. Section 13A(5) of the Pension Funds Act applies only after membership has been terminated according to the Fund's rules, and section 14 and rule 11.11 do not provide for individual voluntary transfers but rather regulate amalgamation and transfer of business. The court found that compulsory membership of…

Source excerpt

• Pension Funds Act
• Interpretation Of Fund Rules
• Termination Of Membership
• Transfer Of Benefits
• Freedom Of Association
• Public Policy

Municipal Employees Pension Fund and Another v SAMWU National Provident Fund and Another (1412/2018)

Municipal Employees Pension Fund and Another v SAMWU National Provident Fund and Another (1412/2018) [2019] ZASCA 42 (29 March 2019)

Court

Supreme Court of Appeal

Case number

1412/2018

Judges

Lewis, Tshiqi, Swain, Van der Merwe, Dlodlo

The Supreme Court of Appeal held that rule 3.2.1 of the Fund unambiguously prohibits members from withdrawing from the Fund while they remain in service with the Municipality. Section 13A(5) of the Pension Funds Act only permits transfer of benefits after membership has ceased in accordance with the Fund's rules, and section 14 does not apply to individual voluntary withdrawals. The rules are consistent with the requirements of the Income Tax Act for provident fund approval and serve to ensure the stability and viability of the Fund. The constitutional challenges were rejected: compulsory mem…

Source excerpt

• Pension Fund Rules
• Termination Of Membership
• Transfer Of Benefits
• Freedom Of Association
• Income Tax Act Compliance

Kitshoff v Fedsure Staff Pension Fund and Others (597/16)

Kitshoff v Fedsure Staff Pension Fund and Others (597/16) [2017] ZASCA 31 (28 March 2017)

Court

Supreme Court of Appeal

Case number

597/16

Judges

Shongwe, Swain, Zondi, Mathopo, Gorven

The appeal concerned enhanced pension benefits after retrenchment. The court held the appellant’s fund membership had ended before retrenchment, so no further claim lay.

• Pension Fund Transfer
• Termination Of Membership
• Retrospective Approval
• Contractual Repudiation
• Pension-fund-transfer
• Termination-of-membership

Phiri v Koreneka Events Managers CC and Others (M40/2016)

Phiri v Koreneka Events Managers CC and Others (M40/2016) [2016] ZANWHC 17 (13 May 2016)

Court

North West High Court, Mafikeng

Case number

M40/2016

Judge

Kgoele

The court held that the applicant’s removal as a member of a close corporation was unlawful and reinstated her membership and banking authority.

• Close Corporation Membership
• Unfairly Prejudicial Conduct
• Termination Of Membership
• Founding Statement Amendment
• Section 49 Remedy
• Corporate Governance

Government Employees Medical Schemes v Appeal Board of the Council for Medical Schemes and Others (2973/2015)

Government Employees Medical Schemes v Appeal Board of the Council for Medical Schemes and Others (2973/2015) [2016] ZAGPPHC 85 (29 January 2016)

Court

North Gauteng High Court, Pretoria

Case number

2973/2015

Judge

S.A.M Baqwa

The High Court dismissed a review challenge to a medical scheme appeal decision, holding that membership could not be terminated for alleged fraud committed by a dependant acting as a service provider.

• Medical Schemes Act
• Judicial Review
• Interpretation Of Scheme Rules
• Fraudulent Claims
• Termination Of Membership
• Administrative-law

Nafcoc (Limpopo) and Others v Kgolane and Others (35826/2011)

Nafcoc (Limpopo) and Others v Kgolane and Others (35826/2011) [2015] ZAGPPHC 1013 (31 July 2015)

Court

North Gauteng High Court, Pretoria

Case number

35826/2011

Judge

J Louw

The court held that a 21 April 2011 NAFCOC Limpopo election was invalid, the membership terminations were unlawful, and the election moratorium lacked authority.

• Non Joinder
• Ultra Vires
• Interdict
• Corporate Governance
• Constitutional Compliance
• Termination Of Membership