Case Law[2025] ZAWCHC 45South Africa
Tolhof General Dealer (Pty) Ltd v Coalition Trading 790 (Pty) Ltd (4906/2024) [2025] ZAWCHC 45 (12 February 2025)
High Court of South Africa (Western Cape Division)
12 February 2025
Judgment
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# South Africa: Western Cape High Court, Cape Town
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## Tolhof General Dealer (Pty) Ltd v Coalition Trading 790 (Pty) Ltd (4906/2024) [2025] ZAWCHC 45 (12 February 2025)
Tolhof General Dealer (Pty) Ltd v Coalition Trading 790 (Pty) Ltd (4906/2024) [2025] ZAWCHC 45 (12 February 2025)
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sino date 12 February 2025
IN
THE HIGH COURT OF SOUTH AFRICA
(WESTERN
CAPE DIVISION, CAPE TOWN)
Case No: 4906/2024
In the matter between:
TOLHOF
GENERAL DEALER (PTY) LTD
Applicant
and
COALITION
TRADING 790 (PTY) LTD
Respondent
Heard
on
:
19 August 2024
Delivered
on: 12
February 2025
JUDGMENT
RALARALA,
J
INTRODUCTION
[1]
The Applicant has brought an urgent
ex parte
application that
is divided into two parts. In Part A, the Applicant sought an order
for the attachment of certain assets in possession
of the respondents
that it claims are its movable property. In Part B, the Applicant
seeks the removal of these assets. Fortuin,
J granted the relief
sought in Part A, and the matter was subsequently set down for
hearing in respect of Part B and for the determination
of the
Respondent’s Rule 7 notice dated 17 April 2024.
FACTUAL
BACKGROUND
[2]
The Applicant had a sole shareholder and director, Henning Petrus
Cornelius Haarhoff
(“Mr Haarhoff”)
who passed
away, and in his last will and testament appointed Jonathan Fabian De
Jager
(“Mr De Jager”)
an attorney, to be a
co-executor to his deceased estate. According to Mr Haarhoff’s
last will and testament, his 100% shareholding
in the Applicant was
bequeathed to Anna Hillagonda Sutherland
(“Ms Sutherland”
).
The Applicant instituted proceedings seeking an order to attach
certain movable assets in possession of the Respondent on the
basis
that the assets belonged to the Applicant. Prior to filing its
answering affidavit, the Respondent challenged the Applicant’s
authority to act as in its view, the Applicant became incapacitated
upon the death of Mr Haarhoff and remains incapacitated.
[3]
In the aforesaid notice, the Respondent challenged the authority of
the Applicant
to institute proceedings as well as the authority of Mr
De Jager to act as the legal representative of the Applicant. In
response
to the Rule 7 Notice, the Applicant filed a supplementary
affidavit.
Subsequently the Respondent filed an
answering affidavit addressing the Applicant’s supplementary
affidavit, and the Applicant,
in turn, filed its replying affidavit.
At the hearing of this application, the Respondent applied for
the striking out of certain paragraphs of the Applicant’s
replying
affidavit, on the basis that new material was included,
which was not only irrelevant, but also vexatious and /or are
inadmissible
hearsay.
[4]
The court is called upon
to determine two key
issues. First
, the authority of the Applicant to institute the
application,
particularly
the authority of Mr De Jager as the attorney of record to act
on behalf of the Applicant.
Secondly,
this court is enjoined to determine the Respondent’s
application to strike out. I consider it prudent to address the
application
to strike out before proceeding with the application in
terms of Rule 7.
APPLICATION
TO STRIKE OUT
[5]
The Respondent seeks an order to strike out paragraphs 8,9,10, along
with subparagraphs,11
to 25, and 38 of the Applicant’s replying
affidavit relating to the Rule 7 application. At the hearing, Mr
McChesney, Counsel
for the Respondent posits that the content of the
aforementioned paragraphs is irrelevant, vexatious and /or are
inadmissible hearsay.
It is his contention that such content was
meant to be traversed in the founding affidavit. Conversely, Ms
Oosthuizen, Counsel
for the Applicant, relying on
Drift Supersand
(Pty) Ltd v Mogale City Local Municipality and another
[2017] 4
All SA 624
(SCA), submitted that if the new matter raised in reply is
in response to the answering affidavit, the court will allow it. Mr
McChesney countered the argument and contended that Paragraph [10] of
Drift Supersand
does not assist the Applicant, as the new
matter raised was such that it should have been included in the
Founding Affidavit. As
such, it was not a response to a defence,
rather it constitutes a new matter. The Applicant is purely
introducing new assertions
in reply, in his view. Counsel for the
Respondent argued that the content of the aforementioned paragraphs
would prejudice the
Respondents, as it ought to have been included in
the founding affidavit for the Respondent to duly respond and address
same in
its answer to the Applicant’s supplementary affidavit.
[6]
The paragraphs in issue detail the sequence of events subsequent to
the death of Mr
Haarhoff, mainly Mr De Jager’s actions and
interaction with Respondent’s directors. Mr De Jager in the
replying affidavit
contends that the purpose of placing the contents
of the said paragraphs before the court is to show the court that the
directors
of the Respondent had accepted his appointment as
Applicant’s director and agreed with his interpretation of the
Memorandum
of Incorporation. The Respondent in the Rule 7 notice and
in its answer to the Applicant’s supplementary affidavit
disputed
the Applicant’s authority to institute the application
and Mr De Jager’s authority as an attorney to represent the
Applicant in these proceedings. In my opinion, Mr Hughe’s
(director of the Respondent) prior knowledge of Mr De Jager’s
directorship in the Applicant is not an answer to any defence raised
by the Respondent in their answer to the Applicant’s
supplementary affidavit responding to the Rule 7 notice, nor is it of
any relevance to the issue raised in the Rule 7 notice.
[7]
Ms Oosthuizen submitted that the court may permit the Respondent to
file supplementary
papers responding to the assertions in the said
paragraphs. As things stand, the contents of these paragraphs
are assertions
extraneous to the issue under consideration, and the
Respondent does not have to incur the costs of drafting a response to
assertions
with no bearing on the issue under consideration. Thus, in
my view, the said paragraphs should be disregarded. I am satisfied
that
the Respondent will suffer prejudice if the striking out
application were to be refused. Accordingly, the argument
proffered
by the Applicant in response to the striking out
application is unsustainable. Therefore, the application to strike
out must succeed.
APPLICANT’S
AUTHORITY TO INSTITUTE PROCEEDINGS
[8]
I now turn to the issues raised in the Rule 7 notice. In the
preceding discussion,
I have alluded to the contentious issues
surrounding the Applicant's authority in initiating the main
application, as well as Mr
De Jager's authority to represent the
Applicant as an attorney in the context of the striking out
application. The court's evaluation
of Mr De Jager's authority as the
Applicant's attorney will fundamentally depend on the Applicant's
authorisation to commence these
proceedings. Simply put, the answer
to the Applicant’s authority to institute these proceedings
will be the determining factor
in the court’s consideration of
Mr De Jager’s authority as the Applicant’s attorney.
[9]
The Respondent contends that the Applicant is incapacitated by virtue
of the death
of its sole shareholder and director, Mr Haarhoff. The
Respondent further asserts that the Applicant’s Memorandum of
Incorporation
and Mr Haarhoff’s last will and testament are
silent regarding the appointment of a director under the
circumstances. According
to the Memorandum of Incorporation, the
director of the Applicant must also be a shareholder. In this
instance, Mr Haarhofff’s
shareholding vests in the deceased
estate, the Respondent contends, thus Mr De Jager’s appointment
as director could not
have been valid.
[10]
Mr De Jager, in his supplementary affidavit, responding to the Rule 7
Notice, contends that the
authority is derived from clause 4.8 of the
Memorandum of Incorporation which regulates amongst other things what
should happen
upon a shareholder’s death. The Applicant
contends further that the clause envisages that the deceased
shareholder is deemed
to have made an offer for the sale of her or
his shares to the other shareholders of the Applicant. Furthermore,
the Applicant
contends that clause 4.8.3.8 of the Memorandum of
Incorporation, which provides that the executor of the deceased
shareholder’s
estate shall manage those shares in the ordinary
course of business. Based on the provisions of the aforementioned
clauses, as
the executor of the deceased estate of Mr Haarhoff the
sole shareholder of the Applicant, Mr De Jager, was appointed as the
sole
director and shareholder. In essence, he stepped into the shoes
of the deceased shareholder. The Applicant averred, that for that
reason, Mr De Jager complies with the definition of the shareholder
as contained in the Memorandum of Incorporation. The relevant
parts
of the affidavit read:
“
7. A
shareholder is defined in the MOI, inter alia as a person complying
with the definition thereof as contained in the Companies
Act, 2008
(“the Act”) and, more specifically, sections 1 and 57(1)
thereof (clause 1.30 of annexure “B”)
8. According to
section 57(1) of the Act, a shareholder
: “includes a person
who is entitled to exercise any voting rights in relation to a
company, irrespective of the form, title
or nature of the securities
to which those voting rights are attached
.”
[11]
The Respondent contends that Mr De Jager was advised that in his
capacity as executor of the
estate he was unable to issue shares to
himself nor exercise any shareholders’ voting rights. A copy of
the Applicant’s
Memorandum of Incorporation was made available
to him, and was directed to clauses that prohibited the transfer of
shares and his
directorship. According to Respondent Mr De Jager in
his correspondence dated 02 February 2024 in response to the
Respondent, only
took exception to the contents of the letter, in his
capacity as executor and director of Applicant and did not raise the
issue
of his interpretation of the Memorandum of Incorporation, and
belatedly raises it. Concernedly, Respondent avers that the letter
from Meridian Accountants, dated 01 February 2024, annexed to the
above mentioned correspondence, reflects Mr Haarhoff’s
shareholding in the Applicant as the minority shareholding of 49% and
the majority shareholding of 51% vests in Tolhof Empowerment
NPC. The
Respondent avers that this would mean that at the time Mr De Jager
appointed himself as a director, he laboured under
the impression
that Mr Haaarhoff was only a minority shareholder and did not consult
with the other shareholder. It is contended
by Respondent that Mr
Haarhoff was not a minority shareholder. Respondent further asserts
that Mr Hughes serves as the Director
of Tolhof Empowerment NPC. The
latter is the entity which had the option of taking up the majority
shareholding in Applicant which
it never exercised, within the period
of three years permitted in terms of the Share Option Agreement
concluded on 29 July 2019
by Applicant and Tolhoff Empowerment NPC.
[12]
According to the Respondent, in the ordinary cause of business, would
imply the disposal of the
shares, which in this instance refer to
transferring them to the designated beneficiary, Ms Sutherland, in
terms of the last will
and testament of Mr Haarhoff. The executor
should not be interpreted as the holder of shares and the possessor
of voting rights,
so the argument goes.
[13]
The Respondent contends that the Memorandum of Incorporation does not
make provision for transfer
of shares, it provides that a shareholder
of the Applicant must also be a director. According to Mr De Jager’s
own version
he is not a shareholder and therefore cannot serve as a
director. Respondent further posits that Mr De Jager fails to provide
the
documents that were submitted to CIPC for his appointment as
director, instead he only annexes the COR39 confirming his
appointment.
The aforementioned document would include the
shareholding resolution pertaining to change in directorship, as
well as the
minutes of the meeting at which the decision was
taken. In his response to the Rule 7 Notice, Mr De Jager, notably
fails
to address the authority of his Firm of Attorneys to act on
behalf of the Applicant.
[14]
The Respondent claims in the supplementary affidavit, that Mr De
Jager’s appointment as
director of the Applicant lacked legal
validity. It is contended that the Applicant is an incapacitated
company as a consequence
of the death of its sole shareholder and
director, and therefore not authorised to conduct any litigation.
Consequently, Mr De
Jager is not authorised to act as legal
representative of the Applicant.
APPLICABLE
LEGAL PRINCIPLES AND DISCUSSION
[15]
The primary reason for the requirement of a power of attorney in Rule
7(1), is to establish an
attorney’s mandate in the proceedings
concerned and stave off repudiation of the process by the
representee, on the basis
that no authority was given to the person
who purported to act on behalf of the representee at a later stage.
It is meant to avert
persons instituting actions in the name of
others when unauthorised to do so.
Public Protector of South
Africa v Speaker of the National Assembly and Others
[2022] 4 All
SA 417
(WCC) paragraph 47.
Erasmus Superior Court Practice Rule 7
Commentary D1-93.
Rule 7 (1) states:
“
Subject to the
provisions of subrule (2) and(3) a power of attorney to act need not
be filed, but the authority of anyone acting
on behalf of a party
may, within 10 days after it has come to the notice of a party that
such person is so acting, or with the
leave of the court on good
cause shown at any time before judgment, be disputed, whereafter such
person may no longer act unless
he satisfied the court that he is
authorised so to act, and to enable him to do so the court may
postpone the hearing of the action
or application.”
In
his last will and testament, Mr Haarhoff designated two co-executors
to manage the administration of his estate. Following his
passing, Mr
De Jager was designated in this capacity as executor by the Master of
the High Court. In these proceedings, that would
be the role he
should assume.
[16]
The will and the Memorandum of Incorporation do not envisage a
situation where the director is
not a shareholder of the Applicant in
this matter. It is so that Mr De Jager was registered as a director
of the Applicant which
is incongruous to the Memorandum of
Incorporation of the Applicant.
[17]
Mr McChesney aptly argued that directors are appointed by
shareholders, and upon death of the
sole shareholder, the
directorship is terminated as envisaged in the
Companies Act read
with the Memorandum of Incorporation. Crucially, counsel contends
that the Memorandum of Incorporation must explicitly provide
for the
appointment of an executor, in his
nominee officio
capacity to
be appointed as a director and reflected as a shareholder. In this
regard reliance is placed on
Ellis v Saga Wine Farms (Pty) Ltd
and Others
[2014] ZAWCHC 48
paragraph 10, where it was stated:
“
. . .This
evidences the failure on the part of the Applicant to appreciate the
manner in which the affairs of a company are conducted
. . . It does
appear that the Applicant overlooks the fact that the Executor or
Interim Curator (once appointed) will be recognized
as the
shareholder, and will appoint a director or directors of a company in
terms of the
Companies Act, 2008
and the Articles and Memorandum of
Association of the company.”
[18]
While on the other hand, Ms Oosthuizen contends that reliance by the
Respondents on the
Ellis
case sought to fortify the
proposition that, the only manner in which an executor can be
appointed as a director of a company under
these circumstances, is if
the Memorandum of Incorporation of the company explicitly allows for
the appointment in their
nominee officio
capacity or
acknowledge them as a shareholder. However, counsel argues that, this
was not the court’s finding in
Ellis.
[19]
In
Ellis
, the financial manager of Saga sought leave for the
appointment as an interim receiver prior to the appointment of the
executors.
The court deemed this to be objectionable, as this would
confer power to the financial manager to conduct the affairs of the
company
and administer the deceased’s estate without the
Master’s supervision. It is further averred by Ms Oosthuizen
that,
although the company’s Memorandum of Incorporation, in
Ellis
expressly made specific provision for the executor to be
entered into the register of members of the company
nominee
officii
, the court did not find that this was the only manner in
which an executor could be appointed as a director or regarded as a
shareholder
of a company in a deceased estate. Applicant placed
reliance on
Clarkson NO v Gelb
1981(1) SA 288 (W) at 290 E-H,
where the Master appointed the attorney of the Plaintiff the executor
of the deceased estate, who
was subsequently appointed as director to
allow him to participate in the company’s resolution.
[20]
Mr McChesney argued that, it was not their contention that an
executor cannot be appointed as
director, they maintain that such
provision must be included in the Memorandum of Incorporation. It
bears emphasis at this point
that the facts in
Clarkson
remain
distinguishable to the situation in
casu
, in that in
Clarkson
the Company had two shareholders and upon the death of the deceased,
the company had only one shareholder remaining. In essence,
the death
of one shareholder did not render the company incapacitated in that
case. Importantly, in
Clarkson,
it is noteworthy that the
executor did not appoint himself as the director, as there was a
remaining shareholder. In contrast, in
Ellis
a financial
manager of the company sought leave of this court to be appointed as
receiver of the company prior to the appointment
of the executors, in
casu
the executor participated in his appointment as director
without judicial oversight. Essentially Mr De Jager appointed himself
as
director of Applicant.
[21]
Mr. McChesney referred the court to a precedent that showcases the
situation in other jurisdictions,
specifically the case of
Kings
Court Trust Ltd and others v Lancashire Cleaning Services Ltd
[2017] EWHC 1094
(CH). I find that the issues the court considered in
that case are relevant to the Applicant's situation, as it involved a
sole
director and sole shareholder who had passed away. In
Kings
Court Trust
the court was presented with a question as to whether
it possessed the authority under section 125 of the 2006 Act, to
rectify the
register. This situation arose when the co-executors and
trustees of the estate of the Respondents were faced with frozen bank
accounts rendering them unable to pay wages and creditors. They then
sought an urgent application to appoint a director to take
control of
the company.
[22]
The court determined that it was justified under section 125 of the
2006 Act to grant the order
sought, based on the urgency of the
situation. Accordingly, the court granted an order to amend the
Company Register to reflect
the names of the executors as
shareholders, allowing them to pass a resolution as shareholders to
appoint a new director. Significantly,
the court emphasised that
these circumstances were exceptional, the company was left without a
director upon death of the sole
shareholder, and cautioned that this
recourse would not be available to companies that still have
shareholders and directors able
to act. The court remarked that there
is no authority, without the intervention of the court to enter the
executors in the Company
Register or for any directors to be
appointed to replace the now deceased director.
[23]
It is evident that Mr De Jager and Mr Claasen, in their roles as
executors of the deceased estate,
lack the authority to act as
shareholders in their personal capacity or as executors without
explicit provisions outlined in the
Memorandum of Incorporation, when
considered alongside the
Companies Act, 2008
. They cannot pass
resolutions to appoint one of themselves as a director of the
Applicant in his personal capacity, even in his
capacity as
nominee
officio
of the deceased estate of Mr Haarhoff without court
intervention.
[24]
In my view, the ownership or dominium of the Applicant’s shares
vests in Mr Haaroff’s
deceased estate. At the risk of
repetition Clause 4.8.3.8 of the Memorandum of Incorporation
envisages that in circumstances where
a shareholder is deceased the
securities of such a shareholder would be available to the remaining
shareholders to exercise the
option to acquire the securities within
a prescribed period. Where such securities are free from the said
option same shall be
dealt with by the executor in the normal course
of business, but subject to the discretion of the Board. In this
instance the sole
director’s death meant that the Board ceased
to exist and thus the afore stated clause could not have been
implemented in
the circumstances.
[25]
Section 61(1)
of the
Companies Act 71, 2008
envisages that a
shareholder’s meeting would be called by the Board of the
Company. Similarly,
section 70(4)
of the
Companies Act contemplates
that where there are no remaining directors of a company, any holder
of voting rights is entitled to exercise those rights in a
meeting
for the election of a director for purposes of replacing a member of
the Board. A shareholders’ meeting according
to the
Companies
Act is
a meeting held by the holders of the company’s
securities who are entitled to exercise voting rights in relation to
the matter
which is the subject of the meeting. According to
section
1
of the
Companies Act voting
rights is defined as follows:
“ ‘
voting
rights’,
with respect to any matter to be decided by the
company, means-
(a)
The
rights of any holder of the company‘s securities to vote in
connection with that matter, in the case of a profit
company;
or
(b)
The
rights of a member to vote in connection with the matter, in the case
of a non profit company.”
It
is important to note that the Applicant had no board of directors,
which according to clause 4.6.1 of the Memorandum of Incorporation
requires that any disposal of or transfer of securities should be
with prior approval of the Board.
[26]
Both Mr De Jager and Mr Claasen are not holders of securities of the
Applicant and thus not authorised
to act as if they are. Similarly,
it is abundantly clear that no voting rights were conferred to the
co-executors enabling them
to convene a shareholders’ meeting
on 30 June 2022.
Demonstrably,
there is no sound basis established upon which Mr De
Jager and Mr Claasen as co- executors derive the power to convene a
shareholders
meeting when at that stage the Applicant had no
shareholders. Guided by the Constitutional imperatives set forth in
section 233
of the Constitution that every court must prefer any
reasonable interpretation of the legislation that is consistent with
international
law over any alternative interpretation that is
inconsistent with international law, I find
Kings Court Trust
instructive and apposite to the present matter. For
we have established that in other jurisdictions in exceptional
circumstances
such as
in casu
the executors to a deceased
estate, in the absence of shareholders, had no power to take any
resolution to appoint a director, that
authority vests with the
court.
[27]
Ostensibly, from the Memorandum of Incorporation, Mr De Jager’s
contention does not find
favour at all, I say this because even as an
executor of the deceased estate, his directorship would be precluded
by clause 7.1.5
of the Memorandum of Incorporation which stipulates:
“
Subject to the
Act (inter alia sections 69 and 71 thereof) any contrary provision in
this Memorandum, each director of the company
shall serve as such for
an indefinite term unless appointed for a specific term.”
[28]
Concomitantly, the relevant parts of the minutes and the resolution
taken at the shareholders
meeting on 30 June 2022 read:
“
9. The
shareholders voted unanimously that Jonathan Fabian de Jager be and
is hearby authorised to sign all such documentation and
do all such
things as may be necessary for or incidental to the appointment of
Jonathan Fabian de Jager as director and removal
of the late Henning
Petrus Cornelius Haarhoff as director.”
[29]
Evidently, no specific term is provided for in Mr De Jager’s
directorship which means Mr
De Jager is appointed director of the
Applicant for an indefinite term. I am thus, unable to reason how an
executor of a deceased
estate could be appointed a director in a
company indefinitely as the mandate of an executor is not in its
nature intended to continue
over an indeterminate or unlimited
duration. In my view, this is an indication that there was no prior
consideration of the Memorandum
of Incorporation when the
co-executors of Mr Haarhoff’s deceased estate convened the
extraordinary Shareholders’ meeting
on 30 June 2022.
[30]
It is also clear from the case law that in circumstances such as
these that befell the Applicant,
the business of the company will
only be conducted as guided by the provisions of the
Companies Act
and
the Memorandum of incorporation. Dlodlo J, in
Ellis
dealing
with circumstances akin to these in the instant matter observed as
follows:
“
[7] The
corporate governance and business of a company is conducted pursuant
to the provisions of the
Companies Act, 2008
, together with the
Memorandum and Articles of Association of the company. The Memorandum
and Articles of Association stipulate
how the company is to be
governed and matters related thereto. The
Companies Act, 2008
, makes
provision; inter alia, for fiduciary duties and obligations of
Directors of a company; has provisions protecting against
the
reckless conduct of the business of a company (which would include
borrowing money) and provides for personal liability of
directors to
creditors in certain circumstances; and further provides for
responsibilities of the accounting officers of the company.
[8] The problem with
the relief sought by the Applicant is that it seeks to give him (and
he is neither a shareholder nor a Director
of the company) the power
to conduct the affairs of the company:
(a) Without regard for
the provisions of the
Companies Act, 2008
or Articles and Memorandum
of Association of the company; (b) In a manner not provided for as
envisaged in either the
Companies Act, 2008
or the Articles and
Memorandum of Association of the company; (c) Without the Applicant
being a director of the company; (d) Without
regard for the rights of
the shareholder of the company , which is the deceased estate of the
late Roza and in whose deceased estate
dominium in respect of
the shares of the shares of the company vests.”
[31]
The approach taken by the executors of Mr Haarhoff’s deceased
estate in interpreting the
Memorandum of Incorporation of the
Applicant leading to designating Mr De Jager as the sole director of
the Applicant in this context
leads to insensible and un-businesslike
results
. (Natal Joint Municipal Pension Fund v Endumeni
Municipality
2012 (4) SA 593
(SCA) para 18). In my view, it has
the potential of undermining and compromising the purpose of
corporate governance. Therefore,
it cannot be argued that Mr De Jager
disposed with the shares in the normal course of business as
envisaged in clause 4.8.3.8 of
the Memorandum of Incorporation.
[32]
It can be inferred from
Kings Court Trust Limited,
that in
circumstances where the company is incapacitated due to the death of
the sole director and shareholder, the authority for
any director to
be appointed replacing the now deceased sole shareholder and
director, vests with the court. In his founding affidavit,
Mr. De
Jager concedes that the shareholding in Applicant remained in Mr
Haarhoff’s deceased estate. Notwithstanding that,
he disputes
this in reply, asserting that the dominium in the shares and voting
rights vest with him until same are transferred
to Mrs Sutherland. I
agree with the Respondent that Mr De Jager as an executor of Mr
Haarhoff’s deceased estate, the only
manner for him to deal
with shares of the deceased estate is in terms of Mr Haarhoff’s
last will and testament.
[33]
For all the reasons advanced above, I am not satisfied that the
Applicant had authority to institute
the proceedings as an
incapacitated company. It follows therefore that no authority existed
to appoint De Jagers Attorneys to act
on the Applicant’s
behalf.
COSTS
[34]
Lastly, in respect of costs, the Respondent avers that since Mr De
Jager on diverse occasions
received warnings prior to instituting
these proceedings, to which he paid no heed. Correspondence was
directed to Mr De Jager
as alluded in paragraph 11 of the judgment,
precisely on 05 March 2024 alerting him that his directorship in the
Applicant is being
called to question or challenged by the
Respondent. The reasons for the challenge with reference to the
Applicant’s Memorandum
of Incorporation were explicitly
detailed. Mr De Jager’s attention was specifically drawn to the
Share Option Agreement entered
into between Mr Haarhoff, Applicant
and Tolhof Empowerment NPCS NPC as alluded in paragraph 11 of this
judgment. Based on that,
there is no reason that the Applicant should
be mulcted with costs of these proceedings. The Respondent thus
argued that Mr De
Jager must pay the costs. The general rule is that
the successful party is awarded costs. Costs are for the
court’s
discretion. Smalberger, JA in
Intercontinental
Exports (Pty) Ltd v Fowles
1999 (2) SA 1045
(SCA) 25, dealing
with the issue of discretion remarked as follows:
“
The court’s
discretion is a wide, unfettered and equitable one. It is a facet of
the court’s control over the proceedings
before it. It is to be
exercised judicially with due regard to all relevant considerations.
These would include the nature of the
litigation being conducted
before it and the conduct of the parties (or their representatives).
A court may wish, in certain circumstances,
to deprive a party costs,
or a portion thereof, or order lesser costs than it might otherwise
have done…”
[35]
It would be remiss of this court after examination and consideration
of the nature of the litigation
and Mr De Jager’s conduct in
this matter not to grant an appropriate cost order against Mr De
Jager duly sought by the Respondent.
ORDER
[36]
In the result, I make the following order:
36.1
Paragraphs 8,9,10,11,12,13,14,15,16,17,18,19,20,21,22,23,24,25 and 38
of the Applicant’s replying affidavit
are struck out.
36.2
The Respondent’s Rule 7 objection is upheld.
36.3 Mr
De Jager is to pay the costs of the application for striking out and
the
Rule 7
application such costs to include costs of counsel on
scale B.
Judge N.E.
Ralarala
Judge of the
High Court
APPEARANCES
For
the Applicant:
A
Oosthuizen instructed by De Jager & Associates
For
the Respondent:
M
A McChesney instructed by Bailey at Law Attorneys
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