Case Law[2025] ZALCC 40South Africa
Chirwa N.O and Others v Shongwe and Others (LCC184/2024) [2025] ZALCC 40 (18 September 2025)
Land Claims Court of South Africa
18 September 2025
Headnotes
Summary – Trust Law - Majority decision trust-Trustees are not required to act jointly and unanimously if the Trust Deed authorises a majority decision. The decision of a majority of trustees is binding, subject to compliance with the notice of meeting provisions specified in the trust deed, and the required quorum rules are satisfied.
Judgment
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## Chirwa N.O and Others v Shongwe and Others (LCC184/2024) [2025] ZALCC 40 (18 September 2025)
Chirwa N.O and Others v Shongwe and Others (LCC184/2024) [2025] ZALCC 40 (18 September 2025)
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sino date 18 September 2025
SAFLII
Note:
Certain
personal/private details of parties or witnesses have been
redacted from this document in compliance with the law
and
SAFLII
Policy
FLYNOTES:
CIVIL LAW – Trusts –
Compliance
with trust deed
–
Mandates
notice to all trustees – Trustees had not acted jointly as
required by trust deed – Three trustees had
not received
formal notice of meeting – Meeting convened via a WhatsApp
group of active trustees and newly elected
trustees awaiting
letters of authority – Absence of notice to three trustees
rendered resolution irregular despite
majority clause –
Reliance on WhatsApp communication insufficient to meet notice
requirements – Procedural defect
in authorising application
was dispositive.
IN
THE LAND COURT OF SOUTH AFRICA
HELD
AT RANDBURG
CASE
NO:
LCC184/2024
Before
the Honourable Flatela J
Date
of Hearing: 27 January 2025
Date
of Judgment: 18 September 2025
(1)
REPORTABLE:
YES
/NO
(2)
OF INTEREST TO OTHER JUDES: YES/
NO
(3)
REVISED: YES/NO
DATE:
18/09/2025
SIGNATURE
In
the matter between:
MUZI GIBSON CHIRWA
N.O.
First Applicant
NOMSA VERONICA SHONGWE
N.O.
Second Applicant
NOZIPHO JOYCE SHONGWE
N.O.
Third Applicant
THABILE
WINNIE NZIMANDE N.O.
Fourth Applicant
MAJAHA SAMUEL ZULU
N.O.
Fifth Applicant
And
LOBAMBA
SHONGWE
First Respondent
DUMISILE SHONGWE
N.O.
Second Respondent
ZANELE ELIZABETH
VILAKATI N.O.
Third Respondent
BACHAZILE LINDIE
DLAMINI
Fourth Respondent
STATION COMMANDER:
BADPLAAS POLICE STATION Fifth Respondent
Summary – Trust Law
- Majority decision trust-Trustees are not required to act jointly
and unanimously if the Trust Deed authorises
a majority decision. The
decision of a majority of trustees is binding, subject to compliance
with the notice of meeting provisions
specified in the trust deed,
and the required quorum rules are satisfied.
ORDER
1.
The First Respondent‘s point
in limine
is upheld.
3.
Each party to pay their own costs
JUDGMENT
FLATELA
J
Introduction
[1]
The dispute in this application concerns access to and control
over
the properties known as Doornhoek 614 JT, Doyershoek 702 JT,
Goedehoop 622 JT, Groenvallei, Rous 621 JT, Vaalkop 608 JT, and
Vriesland 620 JT (collectively referred to as Trust Property). The
Trust Property is owned by the Dvunge Trust, with the trustees
overseeing its management.
[2]
On 1 November 2024, the Applicants, in their
capacity as trustees for the time being of the Dvunge Trust (“the
Trust”),
brought an urgent
ex
parte
application in terms of Rule 34
of the Rules of this Court
seeking an urgent interdict against
the First Respondent from accessing and holding a meeting scheduled
for 2 November 2024, on
Trust Property belonging to the Dvunge Trust
and ancillary relief.
The orders sought were as
follows:
1.
"That the Court applies Rule 34 of the Land Court Rules to this
application and -
1.1. Dispenses with any
provisions of the Rules, including those which prescribe the forms,
service requirements and time limits
for applications.1.2. Disposes
of the matter in accordance with procedures and at a time and place
that it considers just; and1.3.
Issues directions as envisaged in
Rule 34 of the Land Court
2. That the first
respondent and those who act in concert with him, be restricted and
prohibited from accessing, holding meetings
or gatherings, to the
following Trust property owned by the Dvunge Trust ("the Trust")
2.1. Portions 3 of
Doornhoek
607 J.T.
2.2. Remaining extent
Doornhoek 607 J.T.
2.3. Portion 1 of
Vriesland
620 J.T.
2.4. Craters Edge
615
J.T,
2.5 The remaining extent"
refers specifically to the remaining extent of Vriesland
620 J.T.
2.6. Portion 7 of
Vriesland 620 J.T.; and
2.7. Portion 13 of
Goedehoop 622 J.T.
Without the express and
written authorisation of a majority of the trustees currently in
office and/or the Chairperson and/or secretary
of the Trust.
- That
the first respondent and his associates are directed to forthwith
cease to invite members of the public and/or beneficiaries
to
meetings that are to be held on any of the farms constituting Trust
property unless such a meeting has been authorised by
a majority of
the trustees currently in office and/or the Chairperson of the
Trust, the Secretary of the Trust.
That
the first respondent and his associates are directed to forthwith
cease to invite members of the public and/or beneficiaries
to
meetings that are to be held on any of the farms constituting Trust
property unless such a meeting has been authorised by
a majority of
the trustees currently in office and/or the Chairperson of the
Trust, the Secretary of the Trust.
- That
the first respondent should forthwith cease to disseminate
information and/or communications containing claims that he is
a
chief that presides over Trust property with powers to alienate
and/or encumber Trust property.
That
the first respondent should forthwith cease to disseminate
information and/or communications containing claims that he is
a
chief that presides over Trust property with powers to alienate
and/or encumber Trust property.
- That
the first respondent is hereby interdicted from allocating stands
and/or inviting members of the public and/or trustees to
meetings
pertaining to the allocation of stands and/or the development of
Trust property.
That
the first respondent is hereby interdicted from allocating stands
and/or inviting members of the public and/or trustees to
meetings
pertaining to the allocation of stands and/or the development of
Trust property.
6.
That the fifth respondent (the SAPS) be authorised and directed to
take all steps that are required to
enforce the relief set out in the
preceding paragraphs in the event of the first respondent, and/or his
associates or those acting
in concert with him, not abiding by the
Order of this Honourable Court.
- Directing
that the relief set out in paragraphs 2 – 6 operate as an
interim order with effect from the date of this order
pending the
finalisation of this application on such return date as may be
directed by this Court.
Directing
that the relief set out in paragraphs 2 – 6 operate as an
interim order with effect from the date of this order
pending the
finalisation of this application on such return date as may be
directed by this Court.
8.
Further and/or alternative relief.
[3]
The farms were awarded to the Dvunge Community in terms
of the
Restitution of Land Rights Act 22 of 1994 (“The Restitution
Act”). This followed the successful lodgement of
land claims on
behalf of the Shongwe Tribe and the Mashinini family. The Mashinini
family's claim was consolidated with the Shongwe
community's claim
following advice from the Regional Land Claim Commission to the
Dvunge community.
[4]
The Dvunge Trust was established in 2004 to receive and
manage
various properties purchased by the State in settlement of the land
claim and to hold them for the benefit of the beneficiaries.
However,
since its inception, it has become embroiled in lengthy litigation
initiated by beneficiaries contesting the administration
and control
of the Trust's assets.
[5]
The First Respondent in this matter is Lobamba Shongwe,
a major male
beneficiary of the Dvunge Trust, currently residing in Eswatini. The
First Respondent claims to be the Chief of the
Shongwe Tribe under
the Mahlabatsini Tribal Authority, situated in Baadplaas, Mpumalanga
Province.
[6]
On consideration of the application, I was
satisfied that the allegations rendered the matter urgent and
justified the relief sought
in the notice of motion. I was also of
the view that no prejudice could arise if an interim interdict were
granted. I granted the
interim interdict
,
returnable on 2 December 2024, and issued
directives regarding service and the filing of pleadings.
[7]
The hearing scheduled for 2 December 2024 did not
proceed as directed. Mr Dlamini, representing the First Respondent,
informed the
court of logistical difficulties in the timely filing of
pleadings, primarily due to the First Respondent's residency in
Eswatini.
Revised directives for filing were issued, postponing the
matter to 27 January 2025.
[8]
The First Respondent has since filed a notice of
participation along with an answering affidavit. In his response, the
First Respondent
raised several points
in
limine
that he argues are dispositive
of the case. These are a lack of urgency and a lack of
locus
standi
due to non-compliance with the
Joint Action Rule. The First Respondent argued that the Applicant
acted
ultra vires
as
the Trust Deed did not authorise their actions.
[9]
In the
context of a joint action rule argument, the First Respondent heavily
relied on the Supreme Court of Appeal judgment in
Shepstone
and Wylie Attorneys v Abraham Johannes de Witt NO & Others
[1]
.
The
issue involved Trust law, specifically the principle of joint action
of trustees. In this case, Shepstone and Wylie, a law firm,
claimed
payment of legal fees from the Trust based on the Deed of Suretyship
signed by two out of three trustees. The third trustee
was notified
of the meeting but did not attend, where the decision was made that
the Trust would be responsible for paying one
of the trustees' legal
fees. The Trust opposed the application and raised a point
in
limine
that
the deed of suretyship was signed by only two trustees instead of
three; therefore, it was not properly authorised by the Trust
and was
legally invalid. The High Court upheld the Trust’s point
in
limine.
[10]
The Supreme Court of Appeal majority held that
where a Trust
Deed requires trustees to act jointly to bind the
trust, a majority decision will not bind the trust if one of the
trustees did
not participate in the decision-making.
After
the SCA judgement, Shepstone & Wylie appealed the decision to the
Constitutional Court, where the matter remained pending
at the time
of the hearing.
[11]
Considering the point
in
limine
raised by the First Respondent,
it was crucial to defer the judgment in this case until the
Constitutional Court pronounced on these
issues. It is prudent to
emphasise that the matters at hand are both preliminary and
fundamental to the case's ultimate resolution.
[12]
On 1 August 2025, the Constitutional Court
delivered a judgment that effectively reversed the ruling of the
Supreme Court of Appeal..
[13]
With the context established, I will start by outlining the
relevant parties
involved, followed by a brief factual background.
Then I will analyse the pertinent facts and their legal implications
regarding
the potential outcomes of this application.
The Parties
[14]
The First Applicant is Muzi Gibson Chirwa N.O.,
chairperson of the Dvunge Trust, with registration number IT 349/04
(T).
The Second Applicant is Nomsa Veronica Shongwe N.O.,
acting in her capacity as a trustee for the time being of the Dvunge
Trust.
The Third Applicant is Nozipho Joyce Shongwe N.O., acting in
her capacity as a trustee for the Dvunge Trust
.
The Fourth Applicant is Thabile Winny Nzimande N.O. in her
representative capacity as a trustee for the time being of the Dvunge
Trust. The Fifth Applicant is Majaha Samuel Zulu N.O. in her
representative capacity as a trustee for the time being of the Dvunge
Trust.
[15]
The First Respondent is
Lobamba Shongwe, a male beneficiary of the Dvunge Trust, currently
residing in Eswatini. The First Respondent
described himself as the
Chief of Mahlabatsini situated in the Baadplaas, Mpumalanga Province.
The
First Respondent also
claims
South African citizenship, a status that the applicants dispute. His
domicile address in South Africa remains undisclosed.
All
correspondence between the parties was by email to
c[...]
.
However, for these proceedings, pleadings are served at his
attorneys’ address.
[16]
The Second Respondent is
Dumisile Dorah Shongwe N.O., who is a major female trustee of the
Dvunge Trust. She holds the position
of Secretary. She is also the
spouse of the First Respondent and has a direct interest in the
overall proceedings. Notice of the
application was duly served to the
Second Respondent via email at
S
[...].
[17]
The Third Respondent is
Zanele Elizabeth Vilakati N.O., a major female trustee of the Dvunge
Trust. The application was served at
her email address,
V[...]
.
[18]
The Fourth Respondent is
Bachazile Lindie Dlamini N.O., a major female trustee of the Dvunge
Trust. The application was served
at her email address at
b[...]
.
[19]
The Fifth Respondent is the station commander:
Baadplaas Police Station. The sixth respondent is the master of the
High Court, Pretoria.
[20]
The Second to Fourth Respondents are also the
Trustees for the time being of the Dvunge Trust. The Applicants
asserted that they
are cited as Respondents in these proceedings
because they may have an interest; no relief is sought against them.
The Applicant
submitted that the Second to Fourth Respondents were
not involved in the decision to initiate these proceedings, as they
had not
participated in meetings of the Trust or the Annual General
Meeting.
[21]
The Applicants argued that the First
Respondent held a meeting for the Dvunge/Shongwe community on the
Trust Property scheduled
for 2 November 2024 without obtaining the
necessary consent from the Trustees. In support of their claim, the
applicants provided
a translated voice note from the First
Respondent, converting the original IsiSwati into English. This voice
note was addressed
to the Dvunge Community and the Shongwe community,
conveying the following message:
“
Greetings
to Dvunge Community, Shongwe Community
Today is 6 October. I
would love to thank all those who led us as we embarked on the
journey on Saturday. The journey was a beautiful
and safe one.
It was as if there was a
King present, being guarded by official security details, nothing
stood our way. I feel sorry for those
left behind because of the
people who are distracting them, they need to change their mindset. I
got my stand without hindrance
yesterday.
The map was available
showing how the land will be developed. It will look like an estate
with a wall fences, schools, shops inside
the development. I am
encouraging every Shongwe community member to join in. No one is
perfect so one needs to ensure that they
don’t fight other
people’s fight.
Let us make sure that the
leader left by our elders is taken care of, so that if he has wronged
us, he will come apologise, and
if we have wronged him, we can go and
apologise to him.
Let us
make sure that no one enters Dvunge land without Lobamba’s
permission . Lobamba is the only one with documentation
for the land
and who knows everything about the land. Let us unite and one day we
will reach Cannan.”
[22]
The applicants also attached an email dated 23 September 2024 from
the First Respondent
to its founding affidavit, where the First
Respondent addressed a letter to the First Applicant in his capacity
as
Chairperson of the Trust, informing him about
the planned visit to the Trust Property by himself in his capacity as
chief and the
other beneficiaries on 5 October 2024 (
the
first meeting
). He requested that the
First Applicant ensure the gates were opened to access the Trust
Property, that there was security in place,
and that there was no
intimidation or assault by other beneficiaries.
[23]
The First Applicant contends that he consulted
with fellow trustees by telephone regarding the correspondence in
question. Following
the discussion, the First Applicant formally
declined this
request. The First Applicant pointed out that
since there was no resolution from the Trustees and beneficiaries to
visit the farms
on the stipulated date, they would not accede to his
request, as operations were also ongoing on some of the farms and his
visit
would interfere with them. The First Applicant also asserted
that the Trust operates under its Trust Deed, not under the First
Respondent's authority. The First Applicant highlighted the
obstructive behaviours of the First and Second Respondents, including
their non-attendance at meetings and unfounded complaints they lodged
with the Master, as well as their objections to the issuance
of
letters of authority to newly elected Trustees from a High
Court-ordered general meeting. He alleged that the First Respondent
is attempting to create a parallel structure outside the Trust, aimed
at dividing beneficiaries from Swaziland and South Africa.
[24]
In defiance of this refusal, the First Respondent accessed the Trust
Property with
the assistance of the members of the South African
Police Service (SAPS). He presented them with a court order issued
against the
Khumalo family under the case number LCC 04/2016. This
order was originally granted in favour of the Trustees of Dvunge
Trust,
of whom the First Respondent, as the former Trustee, was an
applicant. The Khumalo family had prevented the Trustees from
accessing the Trust Property, which they were occupying. The First
Respondent was cited as one of the applicants in the application.
The
order permitted the then Trustees and the First Respondent to access
the Trust Property without being intimidated by the Khumalo
Family,
who were the respondents in that matter.
[25]
Following this visit, the First Respondent announced another visit to
the Trust
Property, scheduled for 2 November 2024. He invited the
Mahlabatsini community and other beneficiaries to a meeting.
[26]
On 25 October 2024, the Trustees, through the
Trust attorneys, sought an undertaking that the scheduled meeting on
2 November 2024
would not proceed. The letter is lengthy. The letter
addresses the allegations about the planned sale of Trust Property
and the
development of the land without consent from the Trustees.
The First Respondent responded on 29 October 2024 and advised that
the meeting was proceeding. He also challenged the Trust’s
authority to act on behalf of the Trust on the basis of a conflict
of
interest.
[27]
The applicants approached the Court on an urgent basis to seek an
interdict to
prevent a meeting from being convened by the First
Respondent, which was scheduled for Saturday, 2 November 2024, at
properties
owned by the Trust. The applicants argued that the First
Respondent, a former Trustee and a Trust beneficiary who also refers
to
himself as the Chief of the Mahlabatsini Tribal Authority, had
shared information about this meeting with the media and a local
radio station. The applicants contended that the First Respondent
intended to alienate (i.e., sell) or encumber (i.e., use as
collateral) Trust Property. The applicants aver that the properties
are not the properties of Mahlabatsini Community or the properties
of
any chiefdom.
[28]
The applicants asserted that at the meeting of 5
October 2024, the First Respondent presented a sketch outlining the
stand allocation
on the Trust Property, particularly the farm
Vriesland. This sketch plan involved the development of the township
and shopping
malls on the Trust Property. The First Applicant
asserted that the beneficiaries and the Trustees of the Trust never
approved of
this sketch. The applicants asserted that, as Chairperson
of the Trust, having served in that capacity and as trustee for an
extended
period, he had never attended a meeting where such a plan
was approved or even considered. The applicants annexed a photograph
of the intended development.
[29]
On clear right, the applicants contended that the Trust is the owner
of the Trust
Properties in question, and access to these properties
is regulated by the Trust Deed, thereby establishing a clear right.
[30]
On irreparable harm, the applicants argued
that the First Respondent is disguising himself as a chief, operating
a parallel structure,
and attempting to usurp the functions of the
Trustees and hijack the Trust Property. The applicants claimed that
holding the unauthorised
meeting and granting access could cause
irreparable harm to the Trust, including the potential unlawful
alienation or encumbrance
of Trust Property and disruption of the
Trust's business operations on the land. They stated that, in a voice
note to the members
of the “Mahlabatsini community,” the
purpose of the meeting was to discuss plans for the land that the
government acquired
for the “Mahlabatsini” Community.
Additionally, the Trustees submitted that the Trust property may be
the subject of
unlawful agreements that the First Respondent and his
associate may conclude with innocent third parties.
[31]
The applicants also stated that the First
Respondents left the gates open at the meeting on 5 October 2024, and
some of the cattle
kept on the properties got lost. The applicants
asserted that there is a possibility that the Trust Property might be
invaded,
and any litigation to remove these illegal occupiers could
be costly.
[32]
The applicants asserted that there was no alternative legal remedy
available to
the Trust. Any alternative would amount to Trustees or
beneficiaries taking the law into their own hands, which is
undesirable.
Therefore, approaching the Court was necessary to
protect the Trust’s interests.
[33]
The applicants contended that, as fiduciaries (Trustees), they
are obliged
to protect the Trust and its beneficiaries and have the
authority to bring the application to prevent unauthorised actions
that
jeopardise the Trust’s property and management. Together,
these reasons justified the Trust’s urgent application for
an
interdict to prevent the First Respondent from unlawfully accessing
and alienating Trust Property and to preserve the
status quo.
[34]
On urgency, the First Respondent asserts that the applicants have
failed to satisfy
the requirement under Rule 34(2) of the Court Rules
to set out circumstances rendering the matter urgent and that the
applicants
failed to explain why substantial redress cannot be
obtained at a hearing in due course.
[35]
I am satisfied that the issues raised by the
Applicant regarding the First Respondent's interference in the
management of Trust
Property merit urgent attention. This includes
actions such as undermining the authority of the Trust Chairperson,
convening meetings
without the Trust's consent, misusing a court
order related to a separate matter involving different parties to
enlist assistance
from the South African Police for accessing Trust
property, and the alleged alienation of Trust Property. These issues
exhibit
a sufficient degree of urgency to warrant consideration under
Rule 34(2).
Factual Background
[36]
This application is one of many brought before this Court and in
other courts
in the context of a lengthy legal dispute between the
Trustees for the time being of the Trust and the beneficiaries
regarding
their entitlement. Several judgments have been handed down
in this court regarding the issue. The most recent judgment is the
matter
of Eric Sabatha Khumalo and Others v Musi Gibson Chirwa N.O
and Others, Case No. 4868/2021,
a judgment of the Mbombela High
Court, which ordered that the AGM be held on 9 March 2024.
[37]
Given the urgency of the application, the factual background of
the dispute
between the parties is not detailed in their pleadings.
However, in the matter of
Shongwe NNO and Others v. Regional Land
Claims Commission, Mpumalanga and Others (LCC 46/2009)
2021 ZALCC 27
,
dated July 27, 2012,
an unreported judgment penned by Meer AJP,
the retired Acting Judge President of this court, offers invaluable
perspectives pertinent
to our current examination. Meer J succinctly
encapsulated the background facts as follows:
[6] On 4 September 1995,
Inkosi Zulu Cayphus Shongwe lodged a claim for the restitution of
land rights concerning the following
properties: Belmont 606 JT,
Doornhoek 607 JT, Doyershoek 702 JT, Goedehoop 622 JT, Rous 621 JT,
Vaalkop 608 JT, and Vriesland 620
JT, Sterkspruit 709 JT, Vygebooom
619 JT. The land claim form indicates that in lodging the claim,
Cyphus Shongwe was acting on
behalf of the community in his capacity
as Chief. The claim form also stated that “
Claim based on
our great-grandfather Chief Dvunge, who was allocated chieftaincy of
the area by the late King Mbanzeni of Swaziland
)”.The claim
form also makes a reference to the area at a later stage being under
the supervision of the headman or Induna,
Gama Mashinini.
[7] Mncedisi Sipho
Mashinini lodged a claim on behalf of the Mashinini Family in respect
of Doornhoek 607JT and Vriesland
620JT. The claim form indicated that
the Shongwe family might have an interest in the land claimed and
that the farm Vriesland
“belongs to the Mashinini and Shongwe
families”. The claim form bears a stamp from the Commission on
Restitution of
Land Rights, indicating submission on 31 December
1998. Following the gazetting of both claims, the Mashinini family,
upon receiving
guidance from the Regional Land Claims
Commissioner-Mpumalanga, opted to consolidate their claim with that
of the Shongwe family.
[8] In the
Government Gazette of 10 February 2006, under notice 185 of 2006, the
first respondent gave notice of the Shongwe
claim in respect of the
farm, Doornhoek 607 JT. In the Government Gazette of 17 February 2006
under notice to 210 of 2006, the
acting Regional Land Claims
Commissioner Mpumalanga gave notice in terms of section 11(1)
of the restitution act that a land
claim has been lodged by Cayphus
Shongwe as a representative of the Shongwe family and Mr Mncedisi
Sipho Mashinini acting on behalf
of Mashinini family to the farms
Crater Edge 615 JT, Belmont
606 JT , Onver544
JT, Horton Pope 622 JT
and Friesland 620 JT. The notice is clearly incorrect, as is
indicated on the claim form, the Mashini claim
was in respect of two
farms only namely, Doornhoek 607 JT and Vriesland 620JT the subject
properties.
[9]
After
the publication of the claims the Mashinini family, on the advice of
the First Respondent consolidated their competing claim
with that of
the Shongwe family. The founding affidavit of the First Applicant
states they were advised to do so because the Shongwe
family was,
according to the Commission, further down the road towards a
settlement and had already formed a trust.
[10]
Prior
to the consolidation however, the merits of the Shongwe claim to the
subject properties were conceded in 2003. The claim was
settled on
the basis, as aforementioned, that the state would purchase the
subject properties from their respective owners, the
Seventeenth and
Eighteenth Respondents, for restoration to the claimants. It was also
agreed that the Sixteenth Respondent would
continue operating a lodge and game farm on the subject properties
but would do so as
a tenant of the successful claimants and in
partnership with them. The founding affidavit of the First Applicant
refers to the
settlement framework recording that "the
Commission will pay the current owners R25 million and that the land
would be transferred
to the claimants".
[11] The
founding
affidavit records that "the Commission" recommended that
the Shongwe family should form a trust which would take
transfer of
the properties to be purchased by the State in settlement of their
claim. Consequently on 06 December 2003 the Shongwe
family took a
resolution to form the Dvunge Trust ("the trust") as a
vehicle to receive the restitution benefits. An
official of the First
Respondent together with an attorney from Mncedisi attorneys in
Nelspruit attended the meeting at which the
resolution was taken. The
community was informed by the official that the attorney would, on
the instruction of the First Respondent
register the Dvunge Trust on
behalf of the Shongwe family, for the purpose of taking transfer of
any properties purchased in settlement
of their claim. A decision was
taken as to who the trustees would be and the Dvunge Trust was
thereafter formed and registered
early in 2004. Letters of authority
for the trustees were issued by the Fourteenth
Respondent on 8 August
2004.”
[38]
In their answering affidavit in the matter
of Eric Sabatha Khumalo
and Others v Musi Gibson Chirwa N.O and Others, Case No. 4868/2021,
which concerns an urgent application against the Trustees filed in
the High Court of South Africa, Mpumalanga Division (Mbombela),
the
Applicants elaborated on this historical background and stated that
the Shongwe and Mashinini families trace their origins
to present-day
Eswatini. They assert that in the 1850s, Dzunge Shongwe and Bhevula
Mashinini migrated to a place known as Esigodini
Sakwa Mbhuyana, also
called Mbhuyana Village or Hhwayimba. The reasons for their departure
from Eswatini remain undocumented. Both
individuals served as
warriors under Prince Dlamini of the eMbhuleni Royal House and later
established their residence in what
is now Goedehoop 622 JT.
The Applicant states that Shongwe attained the rank of induna,
representing the interests of the
eMbhuleni Royal House. The final
resting places of both Shongwe and Bhevula are situated on the farm
Goedehoop 622 JT.
[39]
The Applicants aver that Embhuleni Royal House has a lineage of
leadership
that began with Queen LaMagadlela, followed by her
successor, Maquba Dlamini. Currently, the head of the royal house is
Makhosonke
Cambridge Dlamini, who has held his position since 1992.
[40]
Dvunge Shongwe was succeeded by Dlangamandla Shongwe, who departed
from the village
in 1922 to return to his country of origin,
Eswatini. Following Shongwe's exit, Gama Mashinini assumed leadership
as the headman.
He established traditional councils that convened at
Doornhoek after being dispossessed of land and grazing rights on the
Belmont
farm. Subsequently, Mashinini was evicted from Doornhoek and
relocated to present-day Baadplaas under Chief Dlamini's
jurisdiction.
[41]
This context provides a clear rationale for the
residence of other beneficiaries in Eswatini and South Africa.
The status of the
Trust
[42]
As stated earlier, the Trust has been experiencing
ongoing conflict that has led to litigation for some time now. There
are various
court decisions concerning internal disputes between the
Trustees regarding the control of the Trust. Following the litigation
between 2015 and 2017, the Master issued the letters of authority
IT3409/04(T) to the following individual as the Trustee of Dvunge
Trust on 7 March 2017.
a.
Nomsa Veronica Shongwe
b.
Muzi Gibson Chirwa
c.
Nozipho Joyce Shongwe
d.
Dumisile Dorah Shongwe
e.
Thabile Winny Nzimande
f.
Baby Silvia Shongwe
g.
Majaha Samuel Zulu
h.
Zanele Elizabeth Vilakati
i.
Bachazile Lindie Dlamini
[43]
Following the appointment of the Trustees,
the Applicant contends that an Annual General Meeting (AGM) occurred
in 2018, during
which new trustees were appointed. However, due to
protracted disputes over control of the Trust, the incumbent Trustees
have retained
their position since 2017.
[44]
Following the order of the Mpumalanga Mbombela
High Court, the AGM took place on 9 March 2024, resulting in the
appointment of new
trustees. Despite their appointment at the time of
the hearing, the new trustees have been awaiting the issuance of
letters of
authority from the Master of the High Court.
[45]
Following the recent AGM, prospective trustees
have approached the Master’s office to request the issuance of
new letters
of authority. The Applicants claim that the First and
Second Respondents have raised objections to the appointment of the
new trustees,
which has caused the current trustees to remain in
office beyond their designated term. These objections have
effectively reverted
the situation to the pre-2017 status quo.
[46]
The Applicants asserted that, notwithstanding the
historical disputes, the Trust is in a stable financial position in
that the financial
statements for 2017 have been produced and there
was proper accounting for the use of Trust funds at the 9 March 2004
AGM. The
Trust is VAT-compliant.
[47]
The Applicants assert that since 2018, the Second
to Fourth respondents have been absent Trustees in that they refused
and neglected
to attend meetings. The applicants state that the
Second to Fourth Respondents have been absent to the extent that the
applicants,
as trustees, even organised an ANNUAL GENERAL MEETING,
which elected new trustees who are waiting for letters of authority
from
the Sixth Respondent without the participation or involvement of
these trustees.
The First Respondent’s
contentions
[48]
The First Respondent raised points in
limine
,
and they contend that these points are dispositive of the matter.
These are
i.
The First Respondent asserts that the resolution to bring the
application was taken irregularly; therefore,
the Applicants acted
ultra
vires
in bringing this application. Not all trustees received the notice of
the meeting convened by the trustees as outlined in the Trust
Deed.
ii.
The First Respondent contends that there was no lawful resolution
passed authorising the Applicants to
bring the application.
iii.
The Respondent asserts that the Trust Deed requires joint action with
concurrence among Trustees for matters
such as launching an
application. The First Respondent asserts that the failure to cite
all Trustees or to show a valid resolution
means the Applicants are
not acting on behalf of the Trust;
iv.
The Applicants have failed to satisfy the requirement under Rule
34(2) of the Court Rules to set out circumstances
rendering the
matter urgent and that the Applicant failed to explain why
substantial redress cannot be obtained at a hearing in
due course.
[49]
The First Respondent further contends that the Applicants failed to
produce the
minutes of the meeting, thereby ensuring compliance with
the Trust. Consequently, the First Respondent contends that no lawful
resolution was passed authorising the Applicants to bring the
application. The First Respondent asserts that the Trust Deed
requires
joint action with concurrence among Trustees for matters
such as launching an application.
[50]
The First Respondent disputes that the Applicants are in good
standing, challenges
any claims by the Applicants to be "Trustees
in good standing," indicating that this is a legal fiction
without basis.
[51]
The First Respondent raised the following grounds
a.
Applicants are a full complement of eight trustees
b.
The notice of the meeting was not sent to all the
Trustees by clause 12.1 of the Trust
c.
There are no resolutions passed by the Trustees to
launch the Application.
d.
The Trust Deed did not succeed the application
[52]
On merits, the First Respondent admitted to
calling a meeting scheduled for 2 November 2024 at Vriesland with the
descendants of
Dvunge under the Shongwe Kingship residing in the
Republic of South Africa at Mahlabatsini and Eswatini. While the
First Respondent
disputes that the purpose of calling the meeting was
to sell the land, he clarifies that its main purpose is to inform and
to show
beneficiaries about the land acquired for them by the South
African government.
[53]
The First Respondent argues that he called the
meeting in his official capacity as Chief of Mahlabatsini. He
maintains that the
Applicants do not have the jurisdiction or
authority to restrict his constitutional right to freedom of
association, as provided
in section 18 of the Constitution. He
asserts that, as a Chief and traditional authority, he is entitled to
initiate a community
meeting. Furthermore, he asserts that even if
the meeting was called in his capacity as a private citizen and
beneficiary, the
Applicants lack the authority to impede such a
gathering under the terms of the Trust Deed.
[54]
The First Respondent argues that the Applicants
are not authorised to prohibit or permit community gatherings,
whether under the
Trust Deed. On merits, the First Respondent
admitted to calling a meeting scheduled for 2 November 2024 at
Vriesland with the descendants
of Dvunge under the Shongwe Kingship
residing in the Republic of South Africa at Mahlabatsini and
Eswatini. While the First Respondent
disputes that the purpose of
calling the meeting was to sell the land, he clarifies that its main
purpose was to inform and to
show beneficiaries about the land
acquired for them by the South African government.
[55]
The First Respondent contends that he called the
meeting in his official capacity as Chief of Mahlabatsini. He
maintains that the
applicants lack the jurisdiction or authority to
restrict his constitutional right to freedom of association, as
outlined in section
18 of the Constitution. He asserts that, as a
Chief and traditional authority, he is entitled to convene a
community meeting. Furthermore,
he claims that even if the meeting
was called in the beneficiary's name as a private citizen and
beneficiary, the applicants do
not have the authority to hinder such
a gathering under the terms of the Trust Deed.
[56]
The First Respondent argues that the applicants
are not authorised to prohibit or permit community gatherings,
whether under the
Trust Deed.
[57]
The First Respondent contends further that there
was no evidence of actual violence that was established, as he was on
the Trust
Property on 5 October 2024 and was escorted by the police.
He states further that the court order relied upon to solicit the
escort
of the South African Police Service is valid.
[58]
I find it essential to address the legal framework
governing the Trust. To that end, I will scrutinise the pertinent
provisions
of the Dzunge Trust to assess the validity of the First
Respondent’s claims.
Legal
Framework governing the Trust
:
[59]
In South African law, the administration of trusts is governed by
both the trust
instrument (Trust Deed) and the Trust Property Control
Act 57 of 1988 (“the Act”). The Act codifies the
fiduciary duties
of trustees, mandating that trustees exercise their
powers and perform their duties with the care, diligence, and skill
reasonably
expected of a person managing the affairs of another.
The
Trust Control Property Act 57 of 1998 (“The
Act”)
[60]
Act 57 of 1998 defines a “
trust”
as the arrangement through which the
ownership in property of one person is by virtue of a trust
instrument made over or bequeathed
–
(a)
To another person, the trustee, in whole or in
part, to be administered or disposed of according to the provisions
of the trust
instrument for the benefit of the person or class of
persons designated in the trust instrument or for the achievement of
the object
stated in the trust instrument; or
(b)
To the beneficiaries designated in the trust
instrument, which property is placed under the control of another
person, the trustee,
to be administered or disposed of according to
the provisions of the trust instrument or for the achievement of the
objective stated
in the trust instrument.
“
Trust
property”
or
“
property”
means
movable or immovable property and includes contingent interests in
property, which in accordance with the provisions of the
trust
instrument are to be administered or disposed of by a trustee.
Section
9 of the Act:
Care, diligence and skill required of a trustee
(1) A trustee shall
in the performance of his duties and the exercise of his powers act
with care, diligence, and skill which
can be reasonably be expected
of a person who manages the affairs of another.
(2) Any provision
contained in a trust instrument shall be void in so far as it would
have the effect of exempting a trustee
from or indemnifying him
against liability for breach of trust where he fails to how the
degree of care, diligence and skill as
required in subsection (1).
Section
12 of the Act:
Separate position of trust property
Trust property shall not
form part of the personal estate of the trustee except he in so far,
he as the trust beneficiary entitled
to the trust property.
[61]
Cameron
JA in
Land
and Agricultural Development Bank of SA v Parker and Others
[2]
held
as follows regarding the trust :
‘
Except
where statute provides otherwise, a trust is not a legal person. It
is an accumulation of assets and liabilities. These constitute
the
trust estate, which is a separate entity. But though separate, the
accumulation of rights and obligations comprising the trust
estate
does not have legal personality. It vests in the trustees and must be
administered by them, and it is only through the trustees,
specified
as in the trust instrument, that the trust can act.’ (footnotes
omitted).
[3]
[62]
Lately, Nugent JA in
Lupacchini
NO and Another v Minister of Safety and Security
[4]
, approved the principle expressed in
Land
and Agricultural Development Bank of SA v
Parker
and held that
:
‘
A
trust that is established by a Trust Deed is not a legal person –
it is a legal relationship of a special kind that is described
by the
authors of Honoré’s South African Law of Trusts as “a
legal institution in which a person, the trustee,
subject to public
supervision, holds or administers property separately from his or her
own, for the benefit of another person
or persons or for the
furtherance of a charitable or other purpose’
[5]
The Dvunge Trust Deed
[63]
The following definitions contained in the Trust
Deed are relevant:
a.
“
Beneficiaries “shall collectively
mean those persons as per the list attached hereto marked “B”,
as well as those
persons appointed as beneficiaries in terms of this
Trust Deed, membership vesting in the individuals and not households.
b.
Beneficiaries for the purposes of an annual
general meeting or a general meeting at which it is required that a
vote be taken for
any reason whatsoever, shall mean beneficiaries
present at such meeting and not younger than 18 years of age as being
a beneficiary
qualified to vote.
c.
General meeting shall mean a meeting of all the
beneficiaries under the trust, and annual general meeting shall have
a corresponding
meaning.
d.
Disputes shall also include, for this Trust Deed,
without limiting the generality of the term, any dispute as to.
e.
the interpretation of the provisions of this
document means any matters arising from the implementation of the
provisions of this
document.
f.
In the matter arising or in regard to any aspect
of the communal nature of the farm in this document.
Principles,
Beneficiaries, and Entitlements
[64]
The trust operates on the principles of fairness, equity,
accountability, and transparency.
The main rights and obligations of
the Beneficiaries under the Trust are provided in clause 8 of the
Trust. The beneficiaries have
the following tights and obligations.
Right to Improvements
and Maintenance
8.1 Every Beneficiary
shall have the right to make improvements upon the land allocated to
that Beneficiary by the Trust, but such
right is subject to the
obligation of that Beneficiary to maintain such improvements.
Access Rights
:
8.2 Subject to the
consent of the Trust and on terms decided by it, every Beneficiary
shall have the right of access to communal
land and other communal
facilities and amenities. Included in the aforementioned, is the
right of access to land for grazing and
cultivating purposes,
gathering of firewood of thatching grass, fetching of water and
access to other assets, resources and projects
of the Trust.
8.3 All rights of the
Beneficiaries shall be exercised subject to the rules as determined
by the Trust in general meeting from time
to time. Any such rules may
be amended or rescinded by the Trust in general meeting.
Voting Rights
:
8.4 Every Beneficiary
over the age of 18 years shall have the right to vote at the general
meeting of Beneficiaries in person or
by proxy.
Right to Site Use
:
8.5 Beneficiaries to whom
a site has been allocated and recorded in the register are entitled
to the undisturbed use and benefit
of the site, subject to the Trust
Deed’s terms and conditions.
8.6 Every Beneficiary
shall be obliged to pay any levy lawfully imposed on it by the Trust
in general meeting.
8.7 Every Beneficiary
shall be obliged to make contributions required by the Trust towards
the maintenance of the common areas of
the property for the common
good.
8.8 Every Beneficiary
shall abide by the rules established by the Trust.
Right to Nominate a
Successor
:
8.9 Each Beneficiary
shall, on becoming a Beneficiary, nominate one successor in the event
of his or her termination of membership
by death or otherwise save
that such choice shall be subject to the approval of the Trust who
shall consider the following factors
in approving or disapproving
such nomination:
8.9.1
The protection of interests of the Beneficiary’s dependants.
8.9.2
The principles of the law.
8.9.3
The minimization of risk and conflict within the Trust.
8.9.4
The maximization of the well being and interests of the Trust.
8.9.5
Principles of fairness and equity.
8.10 On the
termination of membership referred to in paragraph 8.9 the Trust may,
notwithstanding its prior approval of the
nomination referred to, set
aside such nomination should circumstances have changed taking into
account the factors referred to
in that paragraph.
8.11 On the death or
resignation of a Beneficiary all such Beneficiary’s rights as a
Beneficiary shall pass to the Beneficiary
who succeeds such member in
terms of this Trust Deed.
8.12 A Beneficiary
wishing to relinquish the benefits and rights accruing to it by
virtue of this Trust Deed, or whose membership
of the Trust is
terminated in accordance with the Trust Deed, may dispose of its
benefits and rights to a purchaser of its choice;
provided that the
terms of the sale are disclosed to the Trust, and the Trust in a
general meeting consents to such sale and to
the admission of the
purchaser as a Beneficiary of the Trust. The Trust shall not
unreasonably withhold its consent to a sale or
unreasonably refuse to
admit a purchaser as a Beneficiary. In determining whether to consent
or not the Trust shall take account
of the factors referred to in
paragraph 8.9.
8.13 Every member shall
be entitled to make a copy of the Trust Deed of the Trust at his or
her own expense.
[65]
Clause 13 empowers the trustees to deal with trust property and trust
income for
the trust for the benefit of the beneficiaries.
Powers
of the Trustees:
The
Trustees shall have the following powers:
13.1 To
acquire and hold for the Trust, by purchase, lease, donation,
bequest, in exchange or in any lawful manner
whatsoever, any property
(whether movable or immovable) provided that the Trustees shall not:
13.1.1 alienate,
let or mortgage any immovable property of the Trust, unless this is
done with the full knowledge and consent
of 75% (seventy five
percent) of the total number of Beneficiaries present at a General
Meeting called for that purpose in terms
of paragraph 19 hereof; or
13.1.2 Permit or
condone the rent-free occupation of any land or building owned by the
Trust from time to time by persons
or Association of Persons, save
for purposes which are to the benefit of the Beneficiaries and
consistent with the objections of
the Trust.,
13.2
To pay over to the Beneficiaries their equitable dividend from the
profits accrued as a result
of the farming activities on the Farm,
all Beneficiaries receiving equal dividends;
13.3
To raise, accept and acquire, for the Trust, any monies, gifts,
bequests or payment from any
person, firm, company or association,
that may be raised, given, bequeathed or paid to them as an addition
or with the intention,
to add to the Trust Fund hereby donated to
them. Any addition so accepted and acquired shall be deemed to form
part of the Trust
Fund to be administered and dealt with subject to
the terms of this Trust Deed, including the compliance with any
conditions subject
to which any monies are paid to the Trust,
provided that the Trust shall not accept any donation which is
unilaterally revocable
at the instance of the donor thereof, or which
seeks to impose a condition on the Trust which is inconsistent with
the terms and
conditions of this Trust Deed.
13.4
From time to time, to invest all or any part of the Trust Deed in or
with financial institutions
in accordance with the Financial
Institution (Investment Funds) Act, 1984, and in accordance with the
provisions of this Trust
Deed in order to achieve the objects of the
Trust and in accordance with any condition (if any) which may be
attached to the provision
or any part thereof;
13.5
To open and operate (either themselves or by a person or persons
authorised by them) accounts
in banking institutions, building
societies and other financial institutions, and to utilise such
accounts for the purposes of
the Trust save that all cheques of the
Trust shall be signed by at least two Trustees.
13.6
To reimburse from the Trust Fund for all reasonable and necessary
expenses that may be incurred
by them on behalf of the Trust in or
about the execution of the trusts and powers conferred upon them in
terms of this Trust Deed
and upon having provided proof of such
expenditure.
13.7
To employ staff, agents and other people (either casually,
temporarily, permanently or on secondments)
to carry out the object
of the Trust upon such terms and conditions as they may from time to
time consider desirable, to terminate
such employment or agency, and
to pay their salaries, fees, commissions, remuneration and other
charges out of the Trust Fund,
13.8
To enter into contracts on behalf of the Trust and to adopt and to
accept benefits under contracts
entered into for the benefit of the
Trust, whether before or after the creation of the Trust,
13.9
To appoint auditors to the Trust and to negotiate their remuneration,
13.10 To do all
things reasonably ancillary to the aforegoing powers in order to
efficiently and effectively achieve the objects
of the Trust,
13.11 To
facilitate the planning, development and upgrading of the immovable
property of the Trust in order to
achieve objects of the Trust,
13.12 To create
conduct rules binding on all Beneficiaries and occupants of the Farm
that will regulate the orderly use of
and conduct on the Farm and the
operation of all commercial business and agriculture by the said
Beneficiaries and occupants,
13.13 To create
committees and sub-committees or other structures to achieve the
objects of the Trust.
[66]
The First Respondent appears to mistakenly believe that, because he
is both a beneficiary
and a chief, he has unrestricted access to the
Trust Property. However, this interpretation is incorrect. The
provisions of the
Trust Deed clearly specify that access to the Trust
Property requires prior consent from the Trust, regardless of the
First Respondent's
position.
Discussion
Non-compliance with
the joint action Rule
[67]
The First Respondent contended that the
applicants’ resolution dated 23 October 2024 to launch this
urgent application
is inconsistent with the Trust Deed as not all the
Trustees were involved in the process; thus, the applicants violated
the joint
action principle, which states that the Trustees must act
jointly if the Trust is to be bound by their acts. Therefore, the
First
Respondent asserts that the resolution is incompetent as it was
the result of an irregular procedure.
[68]
Reliance was placed on clause 11.2 of the Trust Deed, which stated as
follows:
“
Save
as may be otherwise provided in this Trust Deed, the decision of a
simple majority of Trustees shall be deemed to be the decision
of
them.”
[69]
Reliance was also placed on clauses 11.7 and 12.1 of the Trust Deed.
Specifically,
the First Respondent contends that the meeting notice
was not sent to all Trustees, highlighting that the Second to Fourth
Respondents,
who are also Trustees, were not informed of the meeting.
They were not given an opportunity to participate. As a result, he
claims
that the Trustees acted
ultra vires
, given that the
Trust Deed does not authorise the convening of the meeting in
question. Furthermore, the First Respondent maintains
that any
actions or decisions arising from this resolution are consequently
irregular.
[70]
The First Respondent also relied on several cases to support the
argument that
the absence of the second to the fourth respondent
rendered the resolution invalid. These cases are:
Shepstone & Wylie
Attorneys v Abraham Johannes de Witt N O & Others
(1270/2021)
[2023] ZASCA 74
(26 May 2023)
Steyn and Others N N O
v Blockpave (Pty) Ltd
2011 (3) SA 528
(FB) (
Blockpave
)
Land and Agricultural
Development Bank of SA v Parker and Others (Parker)
[2004]
4 All SA 261
(SCA)
Joint
Action Rule
[71]
The First Respondent contended that, where a majority vote applies as
in the
present matter, the minority is obliged to act jointly with
the other Trustees in executing any resolution adopted through such
a
majority vote.
[72]
The respondent submitted further that it is not the majority vote but
the resolution
by the
entire Trust board that binds the Trust
despite dissent
. The Respondent relied on the Supreme Court
of Appeal Judgement on
Shepstone & Wylie Attorneys v Abraham
Johannes de Witt N O & Others
(1270/2021)
[2023] ZASCA 74
(26
May 2023). In that matter, V, RV,
and W were
trustees of the Penvaan Property Trust (the Trust). The FirstRand
Bank brought an application for the sequestration of
the Trust, after
liquidating two companies which did business from premises owned by
the Trust. TV and RV were in divorce proceedings
when RV and W
arranged a trustee meeting. Since TV lived quite far away at the
time, he indicated that he could not attend the
meeting at the place
suggested by RV and W. To accommodate him, the meeting was moved
closer to him, but he still did not attend.
At the meeting, W and RV
decided that the Trust would stand surety for RV’s legal costs
in the divorce proceedings and signed
a deed of surety in favour of
the appellants. When RV could not pay the appellants’ legal
bills because she was dependent
on income from the two companies, the
appellants looked to the trust for payment. The appellants then
issued summons in the High
Court for payment of their fees. The
trustees of the Trust at the time denied that the surety was properly
signed, as TV was not
at the meeting and did not sign the deed of
surety, because the trustees did not act jointly as required by the
Trust Deed. The
high court upheld the defence by the trustees. The
appellants then appealed to the SCA.
[73]
The question for determination by the SCA was whether the deed of
suretyship
signed by Mrs Volker and Mr de Witt (in their capacity as
trustees) in favour of the appellant was duly authorised by the Trust
and was legally binding on it. The Trust Deed does not explicitly
provide that the decisions of the trustees may be taken by majority
vote. The Supreme Court of Appeal produced two judgments agreeing
that Shepstone and Wylie’s appeal should be dismissed but
differed on the reasons. The Supreme Court of Appeal majority noted
the trite principles that trustees are co-owners of a trust’s
assets and must make resolutions jointly to bind the trust unless the
Trust Deed has a specific majority clause. The Supreme Court
of
Appeal majority purportedly applied Parker, concluding that where a
Trust Deed requires trustees to act jointly to bind the
trust, a
majority decision will not bind the trust if a trustee did not
participate in the decision-making.
[74]
The Supreme Court of Appeal minority found that the Trust Deed does
not explicitly
provide that the decisions of the trustees may be
taken by majority vote. The minority relied on
Endumeni
to interpret the Trust Deed as a whole. The minority rejected
Shepstone and Wylie’s interpretation of clause 26’s
reference to “unanimous agreement to conduct business” as
meaning that unanimity is only required where the Trust is
conducting
business in a narrow commercial sense.
[75]
The court dismissed the appeal, stating that all trustees needed to
sign the
deed of surety or provide a mandate for one or more to do
so, even if internal decisions could be made by majority vote. The
court
held as follows:
[25] As held by this
Court in
Le Grange
, the trustees, when dealing with trust
property, are required to act jointly. Even when the trust deed
provides for a majority
decision, the resolutions must be signed by
all the trustees. A majority of the trustees may take a valid
internal decision, but
a valid resolution that binds a trust
externally must be signed by all trustees, including the absent or
the dissenting trustee.
It is a fundamental rule of trust law, which
this Court restated in
Nieuwoudt N O and Another v Vrystaat
Mielies (Edms) Bpk
[2004] 1 All SA 396
(SCA), that in the absence
of a contrary provision in the trust deed, the trustees must act
jointly if the Trust estate is to be
bound by their acts. The rule
derives from the nature of the trustees’ joint ownership of the
trust property. Since co-owners
must act jointly, trustees must also
act jointly.
[26]
It therefore follows that where a trust deed requires that the
trustees
must act jointly if the Trust is to be bound, a majority
decision will not bind the Trust where one of the trustees, such as
in
this case, did not participate in the decision-making. This is
imperative particularly when the trustees are required to take a
decision involving the assets of the Trust. In the case where the
majority decision prevails, all trustees are still required to
sign
the resolution. In
Land and Agricultural Development Bank of SA v
Parker and Others (Parker)
2005 (2) SA 77
(SCA);
[2004] 4 All SA
261
(SCA), this Court held that when dealing with third parties, even
if the Trust instrument stipulates that the decision can be made
by
the majority of trustees, all trustees are required to participate in
the decision making and each has to sign the resolution.
The court in
Blockpave
restated the aforementioned principles in
Parker
.
It went on to state that a trust operates on resolutions and not on
votes. This is significant as the Trust does not explicitly
provide
that external decisions may be taken by a majority vote.
[27]
Similarly, in
Van der Merwe,
the court also endorsed the
principle that trustees have to act jointly and that the minority is
obliged to act jointly with other
trustees in executing the
resolution adopted by the majority. A majority decision prevails only
where there has been participation
by all trustees where the trust
deed expressly provides for it. In this case, on every possible
interpretation of what happened
on 25 March 2013, there is no room to
conclude that Mr Volker participated in the decision-making. It is a
misnomer for the appellant
to infer participation in the meeting only
on the basis that Mr Volker received reasonable notice thereof. The
high court was therefore
correct to conclude that the trustees did
not act jointly.
[28]
The appellant’s reliance on clause 16 of the main provisions is
misplaced. It is difficult to follow the rationale for relying on
clause 16, as it refers to disagreements at the meeting. There
were
no disagreements at the meeting.
Honorѐ’s South
African Law of Trusts
, as pointed out by the high court,
authoritatively confirms that all important decisions are to be taken
unanimously. The reliance
in
Le Grange
on
Van der Merwe
,
which held that the decisions of the majority of trustees present at
a meeting shall prevail, was misplaced (see para 15 of
Van der
Merwe
). The decision in
Blockpave
paras 37-38 endorses the
trite principle that a trust operates in two different spheres, that
is internally and externally. Internally,
trustees may disagree and
if the trustees are not unanimous, a matter may be put to a vote. The
majority vote prevails and the
dissenting trustee has to subject
himself to the democratic vote of the majority. Externally, trustees
cannot disagree. In the
external sphere the Trust functions by virtue
of its resolutions, which have to be supported by the full complement
of the Trust
body. External decisions are those relating to the trust
property with the outside world and internal decisions may relate to
the
use of income for the welfare of the beneficiaries of the trust.
[76]
According to Shepstone and Wylie, the Supreme Court of Appeal's
majority judgment
represents a material deviation from the law as
previously expressed in the Supreme Court of Appeal and is wrong.
Shepstone and
Wylie further argue that the Trust Deed stipulates that
legal documents needing execution must be signed by at least two
trustees
and implicitly not by all three, as long as reasonable
notice is given to each trustee.
[77]
Tolmay AJ writing for the
unanimous court in
Shepstone
& Wylie Attorneys v De Witt N.O
[6]
expressed herself as follows:
“
The question now
is, did the Supreme Court of Appeal majority indeed
get the law wrong? The answer is yes.
The
Supreme Court of Appeal majority stated that it is
trite that “trustees must act jointly in taking decisions
and
resolutions for the benefit of the Trust and beneficiaries thereof,
unless a
specific majority clause provides otherwise
”
.
[7]
In terms of
Parker
[8]
and
Nieuwoudt
,
[9]
However, the principle is
that a Trust Deed can provide for something other than joint action
by trustees, and it can do so
through a majority clause.
The Supreme Court of Appeal majority therefore
construed the principle narrowly
with no authority for doing so.”
[78]
At paragraph 57 the learned judge continued and
stated the following:
[57]
This takes us to another error in the Supreme Court of Appeal
majority’s analysis of trust law.
After relying on
Le Grange
,
the Supreme Court of Appeal majority stated that
“[e]ven when the Trust Deed provides for a majority decision,
the resolution must be signed by all the trustees”.
[10]
This is plainly in conflict with the principle expressed in
Nieuwoudt
and
Parker
that a Trust Deed can
provide for decision-making other than by joint action. The
apparent reliance on
Le Grange
is misconceived.
Le Grange
stated that resolutions
signed by trustees are “usually” a manifestation of
trustees’ joint decision.
[11]
The Court went on to say that where (as on the facts of that case)
the majority (being two trustees) had signed a resolution
and the
third abstained, it would be placing “form over substance”
to insist on having the third trustee’s signature
on the
resolution.
[12]
[58] The majority
seemingly failed to appreciate the important distinction between
unanimous-decision trusts and majority-decision
trusts. What we
have here is of the latter. Thus, in a trust of this type,
where the Trust Deed includes a freestanding
majority vote clause (as
was the case in
Van der Merwe
and
Le Grange
), the
trustees must act
jointly
but are not required to act
unanimously
. Absent a freestanding majority clause (as
was the case in
Parker
), the trustees must act not only
jointly but also unanimously.
[59] The Supreme
Court of Appeal majority recorded that the High Court
had stated that
Honoré’s
South African Law of Trusts
“
authoritatively
confirms that all important decisions are to be taken
unanimously.”
[13]
However, the High Court actually quoted
Honoré’s
South African Law of Trusts
as
stating that “unless the trust instrument so provides –
as it usually does – it is doubtful whether matters
of
substance can be regulated by majority decisions”.
[14]
The important part of the principle, namely that a Trust Deed can
provide for decisions to be taken by fewer than all trustees,
was
overlooked by the Supreme Court of Appeal majority.
The reliance on
Blockpave
is also misplaced.
Blockpave
is clearly wrong when it
states that “externally trustees cannot disagree” and
that in the external sphere a trust “functions
by virtue of
resolutions, which have to be supported by the full complement of the
trust body”.
[15]
As has now been stated repeatedly, trust law allows for a Trust Deed
to provide for majority or quorate decision-making.
[60]
The Supreme Court of Appeal majority’s
misstatement of the principles set out in
Nieuwoudt
and
Parker
and its reliance on the
principle set out in
Blockpave
have
the potential of changing trust law if uncorrected. That will
lead to the consequences envisaged by Shepstone and Wylie.
[16]
[79]
The court found that the Supreme Court of Appeal majority
misconstrued Parker by
narrowly interpreting the principle to mean
that trustees must act jointly and unanimously unless there is a
majority clause, but
then also placed unwarranted restrictions on
this principle. Specifically, the Supreme Court of Appeal majority
limited joint action
to internal matters. It stated that externally
all trustees had to agree, which conflicted with the broader
principles in
Parker v Parker,
which recognises that a Trust
Deed can provide for decisions to be taken other than unanimously,
including through a "majority
clause" that allows decisions
by fewer than all trustees.
[80]
The Constitutional Court held that insisting on unanimous decisions
in all cases
"places form over substance," especially in
trusts that include majority decision clauses, with reference to
Parker
and
Le Grange
as supporting flexibility.
Parker
does not mandate unanimous decisions in all cases but supports that
trusts may include majority decision-making mechanisms. The
Supreme
Court of Appeal’s majority judgment misapplies Parker by
ignoring this flexibility and by failing to correctly interpret
the
Trust Deed provisions allowing for decisions by a subset of trustees.
[81]
In the current matter, the joint action rule was
clearly modified by the Trust Deed. Clause 11.2 states that the
decision of a simple
majority of Trustees shall be considered the
decision of them all, and Dvunge Trust permits decisions to be made
at a quorum meeting
by only the trustees present. Clause 11.5 of the
Trust Deed states that at meetings of the Trustees, a majority of the
Trustees
holding office shall constitute a quorum.
[82]
Clause 12.1 provides that a reasonable
notice of meetings of the Board of Trustees shall be sent to all
Trustees, either personally
or by registered post, addressed to the
last address notified by such person to the theft. Each trustee shall
be obliged to notify
the board in writing of a postal address at
which such notice may be given. Alternatively, notice of the
aforesaid shall be given
by affixing the notice in a prominent public
place within the residential area of the farms.12.2 provides that if
posted, notices
shall be deemed to have been received as of asserted
four days after the notice has been posted.”
[83]
In the current case, clause 11.2 of the Trust stipulated that the
decision
of a simple majority shall be deemed to be a decision of
all. In the current case, the Trustee does not need to be physically
present
at the meeting, provided that: (a) proper notice of the
meeting is given to all trustees, and (b) those in attendance meet
the
quorum requirement.
Clause 11.3 provides that
the Trustees shall meet for the
despatch of business, adjourn
and otherwise regulate their meetings as they see fit.
[84]
The First Respondents raised a number of grounds
challenging the decision of the Applicants to launch this application
as outlined
above.
It remains to be considered whether the
resolution to institute these proceedings followed an irregular
procedure.
[85]
It is common cause that the Second to the Fourth Respondents,
who are also
the Trustees for the time being of Dvunge, were not
served with the notice of the meeting contrary to clause 12.1 of the
Trust
Deed. T
he applicant explains that the
meeting was organised through a Trustees' WhatsApp group, and the
WhatsApp screenshot was sent to
all
active
Trustees
. Mr Magagula is the
elected secretary of the trust. The applicants advanced the following
reasons for not inviting the Second to
the Fourth Respondents.
a.
Since 2018, the Second to Fourth Respondents have
been absentee Trustees, as they have refused or neglected to attend
meetings of
the trustees. They were not present at the AGM ordered by
the Mbombela High Court under case number 4868/2021, where new
Trustees
were elected and are awaiting approval from the Sixth
Respondent.
b.
Following the elective general meeting of the
Trust held on 9 May 2024, as per court order (the High Court) and as
directed by the
beneficiaries for transparency, a WhatsApp group
comprising current active Trustees and elected Trustees was formed.
The WhatsApp
group was used to call the meeting on an urgent basis.
c.
The Second Respondent, as a Secretary of the
Trust, has effectively absconded from his responsibilities. She
is supporting
the First Respondent and has objected to the
appointment of new Trustees, which has led to the current Trustees
staying beyond
their term of office. The objections led to the status
quo prior to 2017 remaining.
d.
The Second Respondent has now objected to the
newly elected Trustees being issued the letters of executorship.
Attempted to legitimise
the status of the applicants who are
trustees, along with their decisions.
e.
The Second Respondent has also supported
applications that sought to have the Trustees removed from the office
through the letters
that she directed to the master and launched a
complaint against the applicant’s activities before any
contract was concluded.
She is also objecting to the appointment of
the new Board of Trustees, which was elected on 09 March 2024.
f.
Lastly, the Second Respondent objected to
the issuance of the letters of authority to the newly elected
Trustees. Their objections
concern the lack of accounting,
verification of beneficiaries, the sidelining of the Trustees from
Swaziland, and they allege that
some of the prospective Trustees are
not eligible for office, among other issues.
[86]
While the Applicants have articulated their rationale for excluding
the Second
to Fourth Respondents from the meeting, it remains clear
that these individuals have not been removed as trustees. The Trust
Deed
stipulates that all trustees are entitled to receive proper
notice of the meeting.
[87]
Addressing a similar
complaint from the Trust's beneficiaries, who themselves had hindered
the functioning of the Trustees, Binns-Ward,
J,
in
Smith and Others v Stellenbosch Municipality
and
Others
[17]
said:
‘
The
irony of the applicants’ complaint that the trustees’
conduct was inconsistent with the trustees’ obligation
to
‘
ensure
... that the initiatives the Trust embarks on are wisely managed,
coordinated and implemented so that the resultant benefits
devolve to
beneficiaries and stakeholders “in a transparent manner and in
a spirit of partnership of partnership with all
concerned”
’
in the
face of a land incursion by a small section of the community, some of
whom were confessedly not even beneficiaries of the
Trust, appears to
have been lost on them. It is another of the paradoxical features of
the case that persons who are beneficiaries
or potential future
beneficiaries of the Trust should complain about the trustees’
failure to comply faithfully with the
decision-making formalities
prescribed in the trust deed when they themselves have unilaterally
and unlawfully appropriated the
Trust’s property, thereby
frustrating the trustees’ ability to be able to discharge their
functions in the manner contemplated
by the trust deed.’
[18]
[88]
Clause 11 of the Dvunge Trust regulates the
proceedings of the Trustees and stipulates the duties of the
Trustees. It provides as
follows:
11.1
Each Trustee shall have one vote
11.2 Save as
may otherwise provide in this Trust Deed, the decision of a simple
majority or Trustees shall be deemed
to be decision of them all.
11.3
Trustees shall meet together for the dispatch of business, adjourn
and otherwise regulate their meetings
as they see fit.
11.4 At
the meetings of the Trustees, a majority of the Trustee holding
office at the time shall constitute a
quorum.
11.5 Any three (3)
Trustees may at any time summon a meeting of the Trustees
11.6
Stipulates that the Trustees shall keep written minutes of their
meeting and all resolution passed by the
Trustees shall be duly
minuted. The minutes shall be open to perusal by both Trustees and
Beneficiaries at all times
[89]
Clause 12 deals with Notice of the meetings. It
provides as follows:
12.1
Reasonable notice of meetings of the Board of Trustees shall be sent
to all Trustees, either personally,
or by the registered post
addressed to the last address notified by such person to the theft.
Each trustee shall be obliged to
notify the board in writing of a
postal address at which such notice may be given. Alternatively
notice of the aforesaid shall
be given by affixing the notice in the
prominent public place within the residential area of the farms.
12.2 If
posted, notices shall be deemed to have been received as asserted
four days after the notice has been
posted.
[90]
The Applicants stated that, following the elective general meeting of
the Trust
held on 9 March 2024, as directed by the beneficiaries for
transparency, a WhatsApp group comprising current active Trustees and
the elected Trustees was formed, and they used the WhatsApp group to
call the meeting on an urgent basis.
[91]
Unfortunately, the Trust does not
distinguish between active and inactive Trustees, regardless of
whether they are in good standing.
The Trust Deed requires that all
trustees be given proper notice of meetings. In this case, it is
widely accepted that the Second
to the Fourth Respondent did not
receive notices of the meeting as outlined in the Trust Deed.
Consequently, the process leading
to the resolution of this
application was irregular. Therefore, the First Respondent’s
point in limine must be upheld.
Costs
[92]
The general rule is that costs are in the discretion of the court,
which discretion
the court must exercise judicially.
This
matter presents a notable paradox, akin to what the learned judge
observed in the Smith case. The First Respondent, who criticises
the
trustees for not adhering to the provisions set out in the trust
deed, has clearly demonstrated through his own documents that
he
himself failed to follow the Trust's provisions. He defied the
Chairperson of the Trust by calling meetings without authorisation
and used an order obtained in another case to access the Trust
Property.
[93]
Considering the history of power struggles between
the Trustees and the First Respondent, it appears that the trustees
were genuinely
concerned about the Trust Property, which may be the
subject of unlawful agreements that the First Respondent and his
supporters
may conclude with the Third Parties. The Applicants
alleged that the Second Respondent, who remains a trustee, has kept
the original
title deeds relating to the Trust Property and refused
to return them to the Trust. The Applicants explained that they bear
a fiduciary
duty to protect the Trust Property, especially
considering that the First Respondent attempted to divest the Trust
Property by
establishing an alternative Trust, the Dlangamandla
Trust, which is now defunct. The First Respondent, in his answering
affidavit,
did not deny the allegations but instead stated that they
are not relevant and are based on speculation.
[94]
It is my considered view that each party should
bear their own costs in the circumstances
[95]
In the premises, I order as follows:
1.
The First Respondent’s first point
in limine
is upheld.
2.
Each party to pay its own costs.
Luleka Flatela
Judge
of the
Land Court of South Africa
Date of Hearing:
27 January
2025
Date of Judgment:
18 September 2025
Appearances
Counsel for
Applicants:
Advocate Mbuso Majozi
Instructed by:
Kgaugelo Baloyi
Incorporated Attorneys
Attorney for the
Respondents:
Mr Eugene Dlamini
Law
firm:
Bouwer
Cardona Incorporated
(a)
[1]
Shepstone
& Wylie Attorneys v Abraham Johannes de Witt N O & Others
(1270/2021)
[2023] ZASCA 74
(26 May 2023)
[2]
Land
and Agricultural Development Bank of SA v Parker and Others
(186/2003)
[2004] ZASCA 56
.
[3]
Ibid, para
10
[4]
Nugent
JA in Lupacchini NO and Another v Minister of Safety and Security
2010 (6) SA 457
(SCA);
[2011] 2 All SA 138
(SCA)
.
[5]
Ibid,
para 1
[6]
Shepstone
and Wylie Attorneys v De Witt N.O. and Others (CCT 171/23)
[2025]
ZACC 14.
[7]
Supreme
Court of Appeal judgment above n 3 at para 20 (emphasis
added).
[8]
Parker
above n 10 at
para 15.
[9]
Nieuwoudt
above
n 32 at para 16 of Harms JA’s judgment (the
second judgment).
[10]
Supreme
Court of Appeal judgment above n 3 at para 25.
[11]
Le
Grange
above
n 18 at para 14.
[12]
Id
at para 23.
[13]
Supreme
Court of Appeal judgment above n 3 at para 28.
[14]
High Court judgment above n 7 at para 35.
[15]
Blockpave
above
n 34 at para 38.
[16]
Ibid at [42] above.
[17]
(18381/2022) [2022] ZAWCHC 134.
[18]
Ibid para 56.
sino noindex
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