Case Law[2025] ZAGPPHC 403South Africa
Kosmosdal Extension 61 and Extension 62 Home-Owners Association NPC v Njokweni and Others (112164/2024) [2025] ZAGPPHC 403 (30 April 2025)
High Court of South Africa (Gauteng Division, Pretoria)
30 April 2025
Headnotes
a meeting on 9 September 2024 where resolutions were purportedly adopted to remove the existing directors of Kosmosdal HOA and to appoint new directors.
Judgment
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# South Africa: North Gauteng High Court, Pretoria
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## Kosmosdal Extension 61 and Extension 62 Home-Owners Association NPC v Njokweni and Others (112164/2024) [2025] ZAGPPHC 403 (30 April 2025)
Kosmosdal Extension 61 and Extension 62 Home-Owners Association NPC v Njokweni and Others (112164/2024) [2025] ZAGPPHC 403 (30 April 2025)
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sino date 30 April 2025
IN THE HIGH COURT OF SOUTH AFRICA
(GAUTENG DIVISION, PRETORIA)
(1)
REPORTABLE: NO
(2)
OF INTEREST TO OTHER JUDGES: NO
(3)
REVISED: NO.
30
April 2025
Case No: 112164/2024
In
the matter between:
KOSMOSDAL
EXTENSION 61 AND EXTENSION 62
Applicant
HOME-OWNERS
ASSOCIATION NPC
and
XOLANI
NJOKWENI
First Respondent
MEMBERS
OF KOSMOSDAL EXTENSION 61 AND
Second Respondent
EXTENSION
62 HOMEOWNERS AS INDICATED IN
ANNEXURE
“A”
Delivered:
This judgment
was handed down electronically by circulation to the parties by
e-mail and the uploading of the judgment to
the caselines profile.
The date for the handing down of the judgment shall be deemed to be
30 April 2025.
JUDGMENT
GROBLER
AJ
[1]
The parties in the matter under
consideration are engaged in a dispute about who should serve on the
Board of Directors of the Kosmosdal
Extension 61 and Extension 62
Homeowners Association NPC (hereinafter referred to as “The
Kosmosdal HOA”). The Kosmosdal
Homeowners Association has 596
members, each member constituting a household with one or more
residents.
[2]
The Respondents, being members of The
Kosmosdal HOA, held a meeting on 9 September 2024 where resolutions
were purportedly adopted
to remove the existing directors of
Kosmosdal HOA and to appoint new directors.
[3]
The Applicant holds the view that the 19
September 2024 meeting was not a valid meeting properly constituted
in terms of the Memorandum
of Incorporation (hereinafter referred to
as “the MOI”) and that the removal of the existing
directors, the appointment
of new directors and all subsequent
actions performed by the directors purportedly appointed on 19
September 2024 are invalid.
[4]
The Applicant approached the Court and
obtained an interim order on 18 December 2024 (after the application
was removed from the
roll by notice on 8 October 2024 and struck off
the roll with costs due to a lack of urgency on 15 October 2024) in
the following
terms:
“
1.
That this application be regarded as urgent and that the normal forms
and periods for filing and
serving of notices and affidavits is
dispensed with.
2.
That a provisional order is granted, serving as an interim interdict,
pending finalisation
of this application on the opposed roll set down
for 22 April 2025, in the following terms,
2.1
That the Respondents are barred and interdicted from spreading or
dispensing misleading communications
regarding the Applicant and the
Board of the Applicant, which communications include, but are not
limited to:
2.1.1
That a valid members’ meeting occurred on the 19
th
of September 2024;
2.1.2
That the resolutions, as provided for in terms of the meeting on the
19
th
of September 2024, were validly adopted;
2.1.3.1
That the meeting on the 19
th
of September 2024 resulted in
the removal of the Applicant’s existing directors;
2.1.4.1
From attempting to alter the records of their Companies and
Intellectual
Property Commission in respect of the directors of the
Applicant.
2.2
Any funds paid in accordance with the Respondents’ directions
to Trafalgar Property Management
(Pty) Ltd is to be kept in Trust
until this matter is finalised by the said Trafalgar.
3.
Costs are reserved for adjudication at the main hearing as referred
to above.”
[5]
The Applicant now seeks confirmation of
the provisional order granted on 18 December 2024.
[6]
The following further relevant factual
information should be noted.
[6.1]
Firstly, The Kosmosdal HOA caused its
annual general meeting (AGM) to take place on 27 November 2024 –
i.e. after the Applicant’s
application was struck of the roll
for a lack of urgency on 15 October 2024 and before the provisional
order was granted on 18
December 2024.
[6.2]
Secondly, certain members of The
Kosmosdal HOA, including the First Respondent, brought an urgent
application under case number
131762/2024 to stay the AGM that was
scheduled for 27 November 2024, but the application was dismissed
with costs on 26 November
2024.
[6.3]
Thirdly, as part of the business of the
AGM on 27 November 2024, directors were appointed and re-appointed,
meaning that some of
the directors that were purportedly removed at
the meeting of 19 September 2024 were re-appointed and some new
directors were appointed.
[6.4]
Fourthly, there is no currently pending
dispute about the validity of the resolutions taken at the AGM of 27
November 2024.
[7]
Approximately one month before the
return date of the provisional order (on 14 March 2025 to be
precise), the Respondents launched
a counterclaim seeking the
following relief:
“
1.
Declaring that special general meeting held 19 September 2024 was
validly called as prescribed by the MOI, and the resolutions
taken
there that are valid and enforceable.
2.
Declaring that the directors elected, on 19 September 2024 are the
lawful directors of the Second Respondent, namely:
2.1
Andile Dube-Rakgosi;
2.2
Mzukisi Dyasi;
2.3
Maite Modiba;
2.4
Kgoramela Joseph Kgasago;
2.5
Yolisa Nomathamasanqa Dyasi;
2.6
Siphiwe Tshabalala;
2.7
Nkoatse Mashamaite.
3. The
Respondents pay the costs of this application on an attorney and
client scale.
[8]
The Applicants oppose the counterclaim.
[9]
Mr Roos on behalf of the Applicant
submitted that the validity of the 19 September 2024 is determinative
of the issues before Court.
Mr Roos submitted that, if it is found
that the meeting of 19 September 2024 was not a valid meeting, the
counterclaim should be
dismissed and the provisional order should be
confirmed. If the 19 September 2024 meeting was a valid meeting on
the other hand,
the counterclaim should succeed and the provisional
order should be dismissed. Ms Isaaks, on behalf of the Respondents
agreed that
the validity of the 19 September 2024 meeting is
determinative of the issues before Court.
[10]
Mr Roos, on behalf of the Applicant
submitted that the meeting on 19 September 2024 was invalid for at
least two reasons relating
to a failure to comply with the
requirements of the MOI when the Respondents purported to call the
meeting of 19 September 2024.
[11]
The relevant portions of the MOI relied
upon by Mr Roos provide as follows:
“
13.4
The Board or a Member entitled to vote, may, whenever she/he/it
thinks fit, convene a Members’ Meeting, or put
the proposed
resolution by way of a Round Robin Resolution contemplated in Clause
1.2.22 to a vote. A Members’ Meeting must
be convened or the
Board must put the proposed resolution by way of a Round Robin
Resolution contemplated in Clause 1.2.22 to a
vote if one or more
Written and signed demands for such a Members’ Meeting or Round
Robin Resolution is/are delivered to
the Company, and
13.4.1 Each
such demand describes the specific purpose for which the Members’
Meeting is proposed; and
13.4.2 In
aggregate, demands for substantially the same purpose are made and
signed by Members holding at least 10% (ten percent)
of the voting
rights entitled to be exercised in relation to the matter to be
considered.”
And
“
13.7
A Members’ Meeting shall be called on at least (ten) Business
Days’ notice delivered by the Company (and
for this purpose
Clause 23.3 shall not apply) to all Members entitled to vote or
otherwise entitled to receive notice
.”
[12]
Mr Roos submitted that there is no
evidence before Court that the Respondents complied with the
requirement that a written demand/demands
for the meeting of 19
September 2024 was delivered to the Applicant signed by members
holding at least 10% (ten percent) of the
voting rights entitled to
be exercised in relation to the matter to be considered as provided
for in clause 13.4.2 referred to
above. The matter to be considered
was of course the termination of the existing directors/removal of
the Board of the Applicant
and the appointment of new directors.
[13]
Failing proof of compliance with the
aforementioned requirement, so the argument went, the Respondents
were in terms of paragraph
3.4 not entitled to convene the meeting of
19 September 2024, even if it is accepted for argument’s sake
(and without making
any finding in this regard) that members could do
so without the Board.
[14]
Ms Isaaks was constrained to concede
that the Respondents did not present evidence to Court to prove
compliance with the provisions
of clause 13.4.
[15]
Mr Roos furthermore submitted that there
is no evidence before Court that the Respondents complied with the
requirement that notice
of a meeting should be given to all members
entitled to vote or otherwise entitled to receive notice as provided
for in clause
13.7.
[16]
Failing proof of compliance with the
aforementioned requirement, so the argument went, the Respondents
failed to give proper notice
of the meeting of 19 September 2024 as
provided for in the MOI, even if it is accepted for argument’s
sake (and without making
any finding in this regard) that members of
the HOA, and not the company as provided for in paragraph 13.7 may
give notice of the
meeting.
[17]
Ms Isaaks was constrained to concede
that the Respondents did not present evidence to Court to prove
compliance with the provisions
of clause 13.7 of the MOI.
[18]
In the premises it is clear that the
Respondents failed to comply with the relevant provisions of the MOI
leading to the inescapable
conclusion that the meeting of 19
September 2024 was not a valid meeting and that the Respondent’s
counter-application stands
to be dismissed, and that the interim
order obtained on 18 December 2024 should be confirmed.
[19]
Insofar as the confirmation of the
provisional order granted on 18 December 2024 is concerned, the funds
referred to in paragraph
2.2 of the provisional order, which was paid
to Trafalgar Property Management (Pty) Ltd and kept in Trust there,
should now be
paid over by them to an account nominated by the
Applicant.
[20]
Accordingly, the following order is
issued:
ORDER:
1.
The provisional order granted on 18
December 2024 is made final in the following terms:
1.1
The Respondents are barred and
interdicted from spreading or dispensing misleading communications
regarding the Applicant and the
Board of the Applicant, which
communications include, but are not limited to:
1.1.1
That a valid Members’ Meeting
occurred on 19 September 2024;
1.1.2
That the resolutions, as provided for in
terms of the Meeting on 19 September 2024, were validly adopted;
1.1.3
That the meeting on 19 September 2024
resulted in the removal of the Applicant’s existing directors;
1.1.4
From attempting to alter the records of
the Companies and Intellectual Property Commission in respect of the
directors of the Applicant.
1.2
Any payments paid into Trust as per the
interim interdict granted on 18 December 2024 shall be transferred
into an account nominated
by the Applicant.
2.
The Respondents are ordered to pay the
costs of the application inclusive of the costs reserved on 18
December 2025 jointly and
severally, the one to pay the other to be
absolved, including the costs of counsel on Scale C.
3.
The Respondents’ counterclaim is
dismissed with costs jointly and severally, the one to pay the other
to be absolved, including
the costs of counsel on Scale C.
J.F.
GROBLER
Acting
Judge
High
Court of South Africa
Gauteng
Division of Pretoria
Date
heard: 23 April 2025
Judgment
delivered: 30 April 2025
Counsel
for the Applicant: W. Roos
Instructed
by Jukes & Associates
Counsel
for the Respondents: W. Isaaks
Instructed
by Giyosi Inc. Attorneys
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