Vilakazi and Others v MEC responsible for Economic Development, Gauteng and Another
Vilakazi and Others v MEC responsible for Economic Development, Gauteng and Another [2023] ZAGPPHC 369; 2023-032601 (18 May 2023)
The court found that the MEC's decision to dissolve the board and terminate the applicants' directorships was procedurally and substantively flawed. The MEC failed to obtain a shareholder's resolution as required by section 71 of the Companies Act, did not provide adequate opportunity for the applicants to make representations, and ignored the dispute resolution mechanism in the shareholder compact. The reasons advanced by the MEC for the dissolution were vague, inconsistent, and suggestive of ulterior motives, particularly the desire to appoint a predetermined candidate as CEO. The court dis…
Source excerpt
- Board Dissolution
- Ulterior Motive
- Interim Interdict
- Corporate Governance
- Removal Of Directors
- Public Power Abuse